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Property Price Index - October 2020
The average asking price for a house in Auckland cracked the $1m mark for the very first time in October18 November 2020
1 Heather Street, Parnell, Auckland
The average asking price for a house in Auckland cracked the $1m mark for the very first time in October, according to the latest Trade Me Property Price Index.
Trade Me Property spokesperson Logan Mudge said property prices in the Auckland region had reached a new record for the second consecutive month in October after climbing 9.4 per cent on the year prior to $1,003,300 - an $86,000 jump.
“It’s full steam ahead for the Auckland property market and there’s strong demand for properties in the region with listing views up a ‘staggering’ 22 per cent on the year prior.
“From what we are seeing, record low interest rates and the need for more space appear to be fueling the market in the region. After two lockdowns this year, Aucklanders appear to be in a race for space, with many Kiwis reconsidering their lifestyles and looking for bigger homes.”
Large houses (5+ bedrooms) in Auckland saw the largest jump in asking price of all house sizes, up 13 per cent to $1,534,350 in October. While small (1-2 bedroom) units saw the average asking price rise 4.5 per cent to $641,450.
Mr Mudge said the lack of supply was also contributing to high prices. “Supply simply isn’t meeting demand in the region with the number of properties on the market up just 4 per cent on October 2019.”
Taking a closer look at the region, the average asking price in Auckland city reached a new record after climbing 14 per cent year-on-year to $1,206,950. Franklin rose 4.1 per cent to a record $789,300, Manukau city was up 9.8 per cent to a new high of $917,150, North Shore city rose 5.6 per cent to a record $1,202,000 and Waitakere city saw a new high of $858,850 after climbing 7.2 per cent on last year.
“While homeowners will be happy, those Kiwis trying to get their foot on the first rung of the Auckland property ladder will be finding it much harder.”
Wellington property prices hit new high
“Auckland wasn’t the only region to experience record high property prices in October. Wellington also followed suit with the average asking price rising 10 per cent on the year prior to reach a new record at $736,100.”
Mr Mudge said views on property listings in the region climbed 21 per cent on the year prior while supply fell 16 per cent.
“Property is in hot demand in Wellington and to put it simply, it’s a great time to sell with demand high, supply low and record prices.
“The most popular property for sale in October was a one-bedroom house in Rongotai which had 861 watchlists in its first two days onsite. The remaining five most watchlisted properties onsite in October were based in the Wellington suburbs of Brooklyn, Island Bay, Newlands and Thorndon.”
Every region sees house price growth
Mr Mudge said every region in the country saw property prices increase year-on-year in October with many experiencing strong double-digit growth.
“The property market is looking very strong right across the country with eleven out of the country’s fifteen regions reaching record property prices in October. Canterbury, Otago, Waikato and the West Coast were the only regions that didn’t reach a new record, however, they all saw property prices increase when compared with October 2019.”
Mr Mudge said property prices in Manawatu/Whanganui continued their record-breaking streak in October, after climbing 15.9 per cent on last year to $466,350. This is the eleventh consecutive month the average asking price has cracked a new record as the property market in Manawatu/Whanganui runs hot.
“New Zealand’s national average asking price also reached a new record after climbing 10.5 per cent year-on-year to $742,950.
“Demand countrywide was up 16 per cent on the year prior as many Kiwis look to invest, buy their first home, upsize or downsize.”
All house sizes hit new record
“Nationwide, the average asking price for large (5+ bedrooms), medium (3-4 bedrooms) and small (1-2 bedroom) houses all reached a new high in October.
“Large houses in Auckland saw the biggest annual percentage growth, while medium and small houses were the favourite in Wellington.”
Urban property prices rise
“Apartments and townhouses nationwide saw solid annual price growth in October, both hitting new highs after 8.4 per cent and 10.6 per cent jumps respectively.”
Mr Mudge said units were the pick of the urban property bunch in October with the average asking price rising 10.2 per cent to $477,100.
“Christchurch was the only region to see prices for apartments and townhouses fall when compared to the year prior.”
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.