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Average NZ house price hits $800k for the first time

New Zealand’s national average asking price hit a new milestone in March, cracking the $800,000 mark for the first time

28 April 2021

New Zealand’s national average asking price hit a new milestone in March, cracking the $800,000 mark for the first time to reach a record $805,100, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said the national average asking price saw an annual increase of 16 per cent last month with every region seeing a solid price jump. “March marked the seventh record-breaking month in a row for New Zealand’s average asking price and house prices are showing no sign of slowing any time soon.

“While this will be music to the ears of homeowners, no doubt it’s hard to hear for prospective buyers who have been hit with relentless price increases for months.”

Price increases were seen across the board, with every region seeing a year-on-year increase in average asking price. “New records were set in every region except for Nelson/Tasman, West Coast, Otago, and Northland.”

Nationwide, demand was up 26 per cent year-on-year, while supply was down by 9 per cent. “As we have seen consistently over the past few months, demand outweighed supply in March, putting pressure on the market and resulting in ongoing price increases.”

Wellington prices see highest year-on-year growth of all-time

The Wellington region had a standout month, with the average asking price increasing by 20 per cent when compared with the same month last year to $829,500. “This is the biggest year-on-year increase on record for the region and marks the first time Wellington’s average asking price has cracked $800,000.

“Every district apart from Carterton saw house prices hit a new high in March with Wellington City coming in as the most expensive district in the region, with a record average asking price of $912,400.”

Most expensive districts in the Wellington region - March 2021. *new record
DistrictAverage asking price - March 2021
WellingtonWellington$912,400* $912,400* 
Porirua Porirua $889,950*$889,950*
Kapiti CoastKapiti Coast$818,950*$818,950*

“Supply has been an ongoing problem for the Wellington property market and in March we saw the number of properties listed for sale drop by 9 per cent when compared with the same month in 2020. Demand, on the other hand, increased in March, with listing views on properties for sale up by 21 per cent year-on-year. Until supply begins to match demand, or demand for property cools, prices will continue to rise in Wellington.

“To put it simply, if houses don’t start being built and put onto the market house prices in Wellington are only going one way, up.”

Mr Lloyd said the most popular property in the country last month was a three-bedroom house on Mairangi Road in Wadestown. “It had an asking price of $900,000 and was watchlisted 406 times in its first two days onsite.”

Auckland house prices rise 10 per cent year-on-year

The average asking price in the Auckland region was $1,047,450 in March, a 10 per cent increase on the same month last year. “If we take a look at Auckland City, the average asking price was just shy of $1.2m at $1,184,950, up 6 per cent on the same month last year.”

Most expensive districts in the Auckland region - March 2021. *new record
DistrictAverage asking price - March 2021
Waiheke IslandWaiheke Island$1,647,100*$1,647,100*
North Shore CityNorth Shore City$1,247,850*$1,247,850*
Auckland CityAuckland City$1,184,950$1,184,950

“This put Auckland City in third place behind the two most expensive districts in the region, Waiheke ($1,647,100) and North Shore City ($1,247,850).”

Mr Lloyd said demand in the region was up by 21 per cent in March when compared to the year prior, while supply was up by 7 per cent.

“The most popular property listing in the Auckland region last month was a three bedroom house in Mount Wellington listed for $900,000. It received 386 watchlists in its first 48 hours onsite.”

Small and medium-sized house prices reach new high

The national average asking price for small (1-2 bedrooms), medium (3-4 bedrooms) and large (5+ bedrooms) houses reached an all-time high in March. “The biggest increase was seen for large houses, with the average asking price seeing a 17 per cent year-on-year increase.”

Mr Lloyd said the national average asking price for all urban properties reached an all-time high in March. “The average asking price for townhouses saw the largest increase, up by 5 per cent year-on-year.”

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.