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Property prices increase by a record 25% in one year

The Wellington property market still going strong.

27 January 2022

In December, the national average asking price jumped by a quarter year on year, to reach a new high of $956,150, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said last month’s national average asking price increase was the largest on record. “After entering the $900,000 bracket for the first time in November, the national average asking price continued to break records and show unprecedented growth last month. December marked the third month in a row where we saw property prices increase by more than 20 percent year-on-year. ”

Looking around the country, Mr. Lloyd said the average asking prices reached an all-time high in every region last month, except for Southland. “Every region’s average asking price increased by at least 15 percent year-on-year in December.”

Nationwide, Mr. Lloyd said the number of houses for sale increased by 6 percent year-on-year last month, marking the first time supply has increased since April 2021. “Nationwide demand, on the other hand, dropped by 4 percent in December when compared with the same month year-on-year.”

Mr. Lloyd said if supply increases continue, we might see prices slow in the new year. “Looking at our December data it is certainly hard to imagine prices cooling off, especially following the relentless increases we saw throughout the past couple of years. However, going into 2022, we will be watching listing numbers closely to see whether that gap between supply and demand narrows and some pressure is taken off the market as a result.”

Manawatū/Whanganui and Hawkes Bay see the biggest growth

The largest price increases were seen in the middle of the North Island, with the average asking price in the Hawke's Bay region up 32 percent year-on-year and the average asking price in the Manawatū/Whanganui region prices up 30 percent.

“Interestingly, both of these regions also saw a massive surge in supply in December when compared with the same month in 2020, with listings up 52 percent in Manawatū/Whanganui and 51 percent in Hawkes Bay. These were the two largest year-on-year increases seen around the country In December.”

Mr. Lloyd puts the flurry of activity in these regions down to the lockdowns slowing the market in the middle of the year. “It looks like Kiwis looking to sell held off in the middle of the year, and then when things started looking stable again, we saw big numbers of listings come on-site at the end of the year.”

Porirua property prices hit $1m

In the Wellington region, the average asking price for a property reached a new high of $966,300 in December, increasing by 27 percent year-on-year. “Looking at the Wellington City district, it spent its 3rd month ever in the $1m brackets, with an average asking price of $1,059,850.”

Mr. Lloyd said Porirua had a standout month, with the average asking price for the district reaching $1m for the first time, at $1,015,250. “This marked a 27 percent year-on-year increase and made it the third most expensive district in the Wellington region.

Most expensive districts in the Wellington region - December 2021 (*new record).
DistrictAverage asking price - December 2021
Wellington CityWellington City$1,059,850*$1,059,850*
South WairarapaSouth Wairarapa$1,022,100*$1,022,100*
PoriruaPorirua$1,015,250*$1,015,250*

In Wellington, supply was up 42 percent year-on-year while demand was down 9 percent. “This marked the second month in a row that the region saw a significant supply increase. If we see this trend continue in the coming months we may well see prices slow in the Wellington region.”

The capital’s most popular property last month was a five-bedroom house on Queens Grove in Lower Hutt. “The property had an asking price of $3,250,000 and was added to 194 of our members’ watchlists in its first two days onsite.”

Auckland prices increase by 22 per cent in 12 months

The average asking price in the Auckland region reached a record $1,253,600 in December, climbing 22 percent year-on-year. “Looking at Auckland City, the average asking price was an all-time high of $1,378,250, making it the third most expensive district in the region.”

The most expensive districts in Auckland in December were Waiheke Island ($1,700,650) and North Shore City ($1,475,800).

Most expensive districts in the Auckland region - December 2021 (*new record).
DistrictAverage asking price - December 2021
Waiheke IslandWaiheke Island$1,700,650$1,700,650
North Shore CityNorth Shore City$1,475,800*$1,475,800*
Auckland CityAuckland City$1,378,250$1,378,250

Supply in the Auckland region was up 10 percent year-on-year in December, while demand was down 10 percent.

Last month’s most popular Auckland property was a four-bedroom, four-bathroom house on Arapito Road, Titirangi, with an asking price of $5,000,000. “It was watchlisted 238 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 last month. “The largest year-on-year increase was seen for small houses, with the average asking price for 1-2 bedroom properties increasing by 29 percent year-on-year.”

Mr. Lloyd said the national average asking price for urban properties (townhouses, apartments, and units) reached a record high in December, at $771,950. “The average asking price for a townhouse saw the biggest increase of all urban property types, up 28 percent on the same month last year and reaching an all-time high of $902,200.”