The average asking price in Wellington has risen $52,550 in the last 12 months to $632,300 as the Wellington property market continues to boom, according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said Wellington property prices have experienced some rapid growth in the last three years and there are no signs that they’ll be slowing any time soon. “With prices falling in Auckland, all eyes are now on the Wellington property market which is seeing some phenomenal price growth and giving homeowners plenty of reasons to smile.”
Mr Jeffries said it’s the lack of supply in Wellington which is keeping prices high, the number of properties for sale in the region in August was down 4 per cent on the year prior. “Wellington is an interesting market with limited supply which puts pressure on prices for both buying and renting. As the region continues to become more popular with buyers and demand increases, prices will keep heading north.”
“As we head into spring, we expect to see a flurry of activity in the Wellington market which will likely bring some strong double digit growth and record asking prices.
“Taking a closer look at the region, the average asking price in Porirua reached a new high in August, climbing a solid 10 per cent year-on-year to $706,200. That wasn’t the only district to reach a new high, however, with the average asking price in Masteron increasing 6 per cent to a record $434,000.”
Mr Jeffries said property prices in Upper Hutt rose 9.6 per cent on the year prior to $564,800, Lower Hutt saw prices increase 7.7 per cent to $584,750 while Wellington prices rose 10.4 per cent to $756,300.
Auckland property prices fall to lowest in three years
“Standing in stark contrast to Wellington, property prices in Auckland have fallen 2.4 per cent on the year prior to an average asking price of $873,500. While this decline may seem relatively small, this brings the average asking price in Auckland to the lowest we’ve seen in three years.”
Mr Jeffries said this dip in prices and record low interest rates has brought out more buyers and seen demand increase in the region.
“There’s strong demand for Auckland properties with listing views up 14 per cent on last year. Sellers, on the other hand, are thinking twice, with the number of properties available for sale falling 10 per cent on August last year.
“It appears that the Auckland property market has finally settled after years of back-to-back records and double-digit price growth which is good news for prospective buyers,” he added.
Mixed bag in the regions
Mr Jeffries said while the national average asking price edged up 2 per cent on August last year to $643,350, the regions were a mixed bag.
“Gisborne, Manawatu/Whanganui, Otago and Southland all reached new records in August after some impressive double digit growth.
“Property prices in Auckland and West Coast, on the other hand, cooled with prices in both regions dipping approximately 2 per cent on the year prior,” said Mr Jeffries.
Mr Jeffries said it appears more Kiwis are taking advantage of the record low interest rates with demand for properties nationwide rising 9 per cent year-on-year.
“Borrowing has never been more affordable thanks to the record low interest rates, we reckon we will see some strong price growth and record average asking prices in the coming months as the property market braces for the busy spring season and more first home buyers and investors eye up their options.”
Large houses (5+ bedrooms) in Wellington reach record
“The average asking price for a large house in Wellington rose a significant 17 per cent to reach a record asking price of $1,022,800. Medium-sized houses (3-4 bedrooms) and small houses in Wellington also saw some solid year-on-year growth climbing 8.2 per cent and 8.9 per cent respectively.
“All house sizes in Auckland saw a dip in average asking price in August.”
Property prices for townhouses and units dip in Auckland
Mr Jeffries said urban property types such as apartments, townhouses and units were a mixed bag in August.
“The average asking price for a townhouse in Auckland fell 7.4 per cent on the year prior, however, outside the Super City, townhouses remained pretty popular. The average asking price for a townhouse in Wellington rose 21 per cent while in Christchurch townhouses were up 6 per cent to a new record of $479,450.”
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.