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Wellington property prices fall by 7%

October Property Price Index 2022

17 November 2022

The average asking price for a property in the Wellington region was $871,050 in October, dropping by 7 per cent, or $64,350, in 12 months, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said this was the largest year-on-year drop on record for the region. “This marked the second price dip in a row for the Capital, following last month’s 3 per cent price fall when compared with September 2021.

“What goes up must come down, and following the meteoric price increases seen in the Wellington market over the past few years, October marked a massive turning point for the region.”

Annual percentage change in average asking price - Wellington region

Looking back at the Wellington region’s highest average asking price of all time, $993,150 in March, Mr Lloyd said prices in the Capital have dropped more than $122,000 since their peak. “This is a remarkable change and will be welcome news for many, particularly those looking to buy their first home.

“Wellington City remained the most expensive district in the region in October, with an average asking price of $972,900, followed by Porirua ($970,600) and Kāpiti Coast ($912,800).”

Mixed bag in the regions

Looking around the country, Wellington was not the only region to see a year-on-year drop in average asking price last month. “In the Auckland and Hawke’s Bay regions, prices fell by 3 per cent on October 2021, while the average asking price in Manawatū/Whanganui fell by 2 per cent.”

Mr Lloyd said the Taranaki region bucked the trend, seeing a new record average asking price of $687,600 in October. “The West Coast (+17%), Northland (+12%), and Canterbury (+11%) regions also saw prices increase by more than 10 per cent in 12 months.”

Nationwide, the average asking price jumped by 1 per cent year-on-year to $904,050, the smallest price growth since October 2019. “This is the first time we have seen a year-on-year increase of less than 5 per cent since April 2020, at the beginning of the pandemic.”

Going forward, Mr Lloyd said it would be an interesting few months as we head into summer. “When compared with the month prior, prices increased by 1 per cent in October, which mirrors what we have seen in previous years where the market picks up during the warmer months.”

Supply remains strong in October

Last month, Mr Lloyd said national supply jumped by 43% year-on-year and marked the highest number of listings ever recorded in October. “Nationwide supply has now seen an annual increase for 13 months in a row.”

Every region saw an increase in supply in October, with the biggest jumps seen in the Nelson/Tasman (+84%), Waikato (+82%), and Northland (+70%) regions.

“Demand, on the other hand, nationwide fell by 17 per cent year-on-year in October, with Gisborne (-37%), Auckland (-24%), and Canterbury (-19%) recording the biggest drops when compared with the same month in 2021.”

Auckland prices up 2% month-on-month

In the Auckland region, the average asking price in October was $1,147,950, up 2 per cent on the month prior. “The most expensive district in the Auckland region last month was Waiheke Island ($1,864,600), followed by North Shore City ($1,381,450), and Rodney ($1,332,600).”

Last month’s most popular property in the country was an eight-bedroom house in St Marys Bay to be sold by mortgagee tender. “The St Marys Bay mansion was watchlisted 611 times in its first seven days onsite.”