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Property market runs hot: prices reach an all-time high

New Zealand’s national average asking price reached a record high of $717,600 in September.

15 October 2020

17 Wilton Road, Wadestown, Wellington

New Zealand’s national average asking price reached a record high of $717,600 in September, a 10 per cent increase when compared with the same month last year according to the latest Trade Me Property Price Index.

Trade Me Property spokesperson Logan Mudge said out of New Zealand’s 15 regions, seven reached record property prices in September. “The average asking price in Wellington, Auckland, Taranaki, Marlborough, Manawatu/Whanganui, Northland and the Bay of Plenty all hit record highs in September as a flurry of buyers hit the market.”

Mr Mudge said interest rates, a lack of supply and the ‘brain-gain’ were behind increasing prices. “With thousands of Kiwis coming home to escape the global pandemic needing housing, this is putting pressure on the market and making it seriously competitive. Record low interest rates are also playing their part, making borrowing a lot more enticing. . When you couple this with limited stock on the market, prices start to rise.”

Nationwide demand was up by 20 per cent on this time last year, while supply remained flat. “With the exception of Gisborne, every region across New Zealand saw an annual increase in demand with most experiencing double-digit growth in September.

“The biggest jumps in demand were seen in Wellington and Auckland, with both regions seeing listing views climb by 24 per cent when compared with this time last year. Waikato and Marlborough were not far behind, seeing a 23 per cent year-on-year." 

New record set in Auckland region

For the first time since early 2017, the average asking price in the Auckland region experienced double-digit annual percentage growth to reach a new record at $972,650. This marks a 10 per cent increase when compared with this time last year when prices were at $882,850 - that’s a $90,000 increase.”

“During 2018 and 2019 we saw the Auckland market cool off as prices remained flat or dipped slightly year-on-year. However, since the lockdown lifted the market appears to be back in action with prices climbing steadily.

“It’s a very good time to sell your property if you are living in Auckland with demand and prices remaining high.”

Taking a closer look at the region, North Shore city was the most expensive district, with an average asking price of $1,183,850. The next most expensive spot was Auckland city with an average asking price of $1,168,800, followed by Waiheke Island with an average asking price of $1,098,550.

“The most popular house in Auckland was a three bedroom house in Onehunga with an asking price of $800,000. It was watchlisted 490 times in the first two days onsite.”

Capital house prices grow by 10% to new record

House prices in the Wellington region followed the national trend, growing 10 per cent year-on-year, with the average asking price reaching an all-time high at $709,350.

Mr Mudge said Wellington city was the most expensive district in the region, with an average asking price of $818,400, up 6 per cent year-on-year. Porirua was the second most expensive spot, with an average asking price of $736,050 followed by Kapiti Coast, which had an average asking price of $697,050.

“Anecdotally, we are hearing of deadline sales, tenders and auctions being brought forward to meet demand as buyers in Wellington are desperate to secure a property.

“Demand for properties in the capital was up significantly when compared to September last year. Wellington city saw a 23 per cent jump in listing views, Kapiti Coast was up 44 per cent, Carterton rose 35 per cent, Porirua up 26 per cent while Lower Hutt saw an 11 per cent jump, and Upper Hutt climbed 21 per cent.”

“The most popular listing in the country last month was a two-bedroom house in Island Bay for $495,000. The listing was watchlisted 660 times in its first two days onsite.”

Prices climb in all regions

The biggest annual percentage increase in house prices was seen in Gisborne in September. “The average asking price in Gisborne increased by an impressive 21.6 per cent when compared with the same month last year to $457,050.”

Mr Mudge said property prices in Manawatu/Whanganui also had a stand-out September. “The average asking price in Manawatu/Whanganui hit an all-time high of $456,950 last month, a 14 per cent jump on September 2019. This marks the tenth consecutive record-breaking month the region has seen.

“Marlborough (12%), Taranaki (11%), West Coast (15%) and Wellington (10%) also saw double-digit growth in regional average asking prices last month.”

Apartment prices reach new heights

Both medium (3-4 bedrooms) and large houses (5+ bedrooms) had a record-breaking month in September. “The national average asking price for large houses reached an all-time high of $1,233,350, while the average asking price for medium houses was $721,150.

“The average asking price for small houses (1-2 bedrooms) in Wellington and Christchurch hit record-setting highs, at $584,300 and $398,250 respectively.”

Nationwide the average asking price for apartments and townhouses were at unprecedented highs in September. “Prices for apartments and townhouses both grew by around 10 per cent year-on-year, reaching record highs of $711,500 and $667,800 respectively.”

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.