Average house price in Wellington City edges closer to $1m

2 Oban Street, Wadestown, Wellington

The average asking price in Wellington City is now just $17,000 shy of $1m after experiencing the largest annual increase of all-time, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said the average asking price in Wellington City rose 20 per cent on last September to a record-breaking $982,900, but that wasn’t the biggest price jump in the region.

“Property prices right across the Wellington region saw some ‘eye-watering’ increases in September with most districts hitting new records. Masterton saw a 32 per cent jump in average asking price to reach a record-breaking $633,950, while house prices in the Kapiti Coast and Upper Hutt rose 31 per cent to a new high of $914,000 and $854,600 respectively.

“Following the August lockdown, house prices in Wellington charged on in September. In fact, when compared with August the average asking price in Wellington City increased almost $40,000.

“For the first time since April, Wellington City saw an increase in the number of properties on the market in September when compared with the year prior with listings up 2 per cent.

Stock is an ongoing issue for the Wellington market so prospective buyers in the area will be pleased to hear there are more options onsite.”

Mr Lloyd said spring was going to be an interesting time for the Wellington market. “Spring is always a busy time for the property market. It’s when the flowers are blooming, the sun starts shining again and properties are generally looking their best. However, with the Reserve Bank hiking the Official Cash Rate earlier this week, and many banks increasing their interest rates in response, this could take some heat out of the market which will come as welcomed news for first-home buyers.”

Mr Lloyd said the most viewed property listing on Trade Me in September was a four-bedroom house in Kelburn which had 515 watchlists in its first two days onsite.

Canterbury property prices crack $600,000

The average house price in the Canterbury region ran hot in September, breaking the $600,000 mark for the first time.

Mr Lloyd said the average asking price in Canterbury saw the largest annual increase of all-time after climbing 23 per cent on last September to $626,400. In Christchurch, prices were up 20 per cent to a record-breaking $628,450.

“The property market in Canterbury and particularly Christchurch has really taken off in the last twelve months. We’re hearing anecdotally from a lot of agents in Canterbury that Kiwis from Wellington and Auckland are considering making the move to areas like Christchurch where they can get more bang for their buck.”

The second most popular property listing on Trade Me in September was a three-bedroom house on Nutfield Lane in Cashmere. It had 471 watchlists in its first two days onsite.

Eleven regions hit new highs

Eleven of New Zealand’s fifteen regions saw record-breaking house prices in September, while the national average asking price hit a new high of $852,750.

“We saw some massive double-digit jumps in house prices across the country last month with the biggest increases seen in Manawatū/Whanganui (up 33 per cent to $606,200) and Hawke’s Bay (up 30 per cent to $778,400).”

The average asking price in Auckland rose 16 per cent to a record-breaking $1,126,350.

Small houses see huge price growth

“Small houses (1-2 bedrooms) saw the biggest increase in price of any house size in New Zealand, reaching a new record of $660,600 in September.”

Mr Lloyd said in Wellington 3-4 bedroom houses were the pick of the month with prices rising 28 per cent to a new high at $969,450.

“Looking closely at urban properties (apartments, townhouses and units), townhouses were the most popular across the country with prices rising 23 per cent on last September.”