News

Property Price Index - November 2021

Property prices increase by 50% in five years

17 December 2021

The national average asking price reached a new record of $936,150 last month, increasing by 50 per cent when compared with November 2016, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said November was the first time the national average entered the $900,000 bracket, and that in the past 12 months prices had climbed by nearly a quarter. “If we compare November’s national average asking price to the same month in 2020, we saw an eye-watering increase of 23 per cent - the largest year-on-year jump we’ve ever seen.”

“If we compare the national average asking price to five years ago, homeowners have made an average of $311,450 on their property.”

Looking around the country, Mr Lloyd said the average asking prices reached an all-time high in every region last month, except for Southland. “The largest year-on-year increases were seen in the middle of the North Island, with Hawke's Bay seeing a 32 per cent jump and Manawatū/Whanganui prices jumping 33 per cent.

“Even after months of record-breaking price increases this year, the market is heading full steam ahead into 2022.”

Nationwide, Mr Lloyd said while the number of houses for sale dropped by 2 per cent year-on-year, this was a massive 25 per cent increase when compared with the month prior. “Demand around the country dropped by 12 per cent in November when compared with the same month year-on-year.”

“With the national average asking price increasing by 5 per cent in the past month alone it’s easy to see why New Zealanders don’t foresee any drop in property values, despite the momentous uplift in listings we’re seeing and some experts predicting otherwise. ”

Wellington prices edge closer to $1m despite supply increase

In the Wellington region, the average asking price for a property reached a new high of $964,250 in November, increasing by 23 per cent year-on-year. “Looking at the Wellington City district, it spent its second month ever in the $1m bracket, with an average asking price of $1,057,900.

“And keeping the city company in November, we saw South Wairarapa hit the $1m mark for the first time with an average asking price of $1,012,950.”

Most expensive districts in the Wellington region - November 2021 (*new record)
DistrictAverage asking price - November 2021
Wellington CityWellington City$1,057,900*$1,057,900*
South WairarapaSouth Wairarapa$1,012,950*$1,012,950*
PoriruaPorirua$987,200*$987,200*

In Wellington, supply was up 31 per cent year-on-year while demand was down 18 per cent. “This is a significant supply increase for a region that has long battled to keep up with demand. This region will be one to watch in the coming months and if this situation continues we may well see prices cool off in the Wellington region.”

The capital’s most popular property last month was a three-bedroom house on Knoll Street in Island Bay. “The property had an asking price of $1,095,000 and was added to 306 of our members’ watchlists in its first two days onsite.”

Auckland cracks $1.2m mark for first time

Despite lockdown restrictions, the average asking price in the Auckland region reached a record $1,251,150 in November after climbing 22 per cent year-on-year. “Looking at Auckland City, the average asking price was an all-time high of $1,402,900, making it the third most expensive district in the region.”

The most expensive districts in Auckland in November were Waiheke Island ($1,732,350) and North Shore City ($1,455,100).

Most expensive districts in the Auckland region - November 2021 (*new record)
DistrictAverage asking price - November 2021
Waiheke IslandWaiheke Island$1,732,350$1,732,350
North Shore CityNorth Shore City$1,455,100*$1,455,100*
Auckland CityAuckland City$1,402,900*$1,402,900*

Supply in the Auckland region was up 1 per cent year-on-year in November, while demand was down 17 per cent as Covid-19 restrictions continue to impact the market.

Last month’s most popular Auckland property was a four-bedroom house on Rose Road in Grey Lynn, with an asking price of $6,295,000. “It was watchlisted 329 times in its first two days onsite.”

Record average asking prices for all house sizes

Mr Lloyd said nationwide, houses of all sizes saw their highest ever average asking price in November. “Small houses saw the largest year-on-year percentage increase of 27 per cent to reach $693,250.”

Mr Lloyd said the national average asking price for urban properties (townhouses, apartments and units) reached a record high in November, at $756,550. “The average asking price for a townhouse saw the biggest increase of all urban property types, up 25 per cent on the same month last year and reaching an all-time high of $873,000.”

MORE INFORMATION

About the Trade Me Property Price Index:

  • The Trade Me Property Price Index measures trends in the expectations of selling prices for residential property listings added to Trade Me Property by real estate agents and private sellers over the past three months.
  • It provides buyers, sellers and realtors with insights into ‘for sale’ price trends by property type and property size.
  • The Index is produced from data on properties listed on Trade Me Property in the three months leading up to the last day of each period. Each period’s value is a truncated mean of the complete three months’ worth of listings. This is to better reflect trends in property prices rather than month-to-month fluctuations in housing stock.
  • The Index uses an “80% truncated mean” of the expected sale price to calculate the average asking price. This excludes the upper and lower 10% of listings by price, and averages the expected sale prices of the remaining properties.
  • It provides an insight into ‘for sale’ price trends by type and size of property. Other reports aggregate property price data across these various properties.