Auckland property prices slump after ten year drop

Auckland property prices slumped in September after the average asking price fell 3.7 per cent on the year prior to $882,850, the largest decrease in ten years, according to the latest Trade Me Property Price Index. 

Head of Trade Me Property Nigel Jeffries said this was the sixth consecutive month that the region has experienced a year-on-year decline. “It’s safe to say the eye-watering price increases that Auckland had become accustomed to are now behind us and prospective first-home buyers will be pleased to know that it’s now that little bit easier to get their foot on the Auckland property ladder.

“It’s hard to say how long it will be before we see the Auckland market bounce back but for the next little while lower prices appear to be the norm.” 

Mr Jeffries said some sellers in the region appeared to be sitting tight while the market continues to cool. “The total number of properties available for sale in the Auckland region dropped by 15 per cent on September last year and it looks like the cooling property marketing has some homeowners thinking twice about selling. 

“Taking a look at the different types of properties for sale in the region, houses took the biggest hit in Auckland last month after prices fell 4 per cent or $40,000 on the year prior to $947,800. The one property type to buck the trend, however, was apartments with the average asking price rising 5 per cent on the same time last year to $681,500.”

Mr Jeffries added that despite falling prices, there’s still strong interest in the Auckland market. “Buyers are taking advantage of the cooling property market and sellers will be pleased to know that if they are looking to sell, there’s plenty of interest with listing views up 8 per cent on September last year.”

Wellington property prices gain momentum

“Property prices in Wellington, on the other hand, tell a very different story after the average asking price rose 8.7 per cent or $51,000 on last year to $644,750.”

Mr Jeffries said property prices in Wellington took off in mid-2016, a few years later than the Auckland market, and have been gaining momentum ever since. 

“We’re continuing to see strong price growth across the entire Wellington region which will give homeowners plenty of reasons to smile.”

Mr Jeffries said property prices increased across all districts in the Wellington region in September, with Porirua and South Wairarapa district seeing incredible year-on-year growth.

District

Average Asking Price (September 2019)

Year-on-year change

Wellington

$768,900

Up 9.8%

Lower Hutt

$580,050

Up 3.7%

Upper Hutt

$572,450

Up 6.3%

Porirua

$695,800

Up 14.5%

Kapiti Coast

$613,800

Up 8.5%

Masterton

$429,850

Up 5.1%

Carterton

$478,450

Up 7.7%

South Wairarapa

$540,500

Up 12.5%

“What’s driving these big price jumps is both a lack of supply in the region and rising demand. The number of properties for sale in Wellington was down 11 per cent on last year while the average number of views rose 2 per cent.

“Interest for properties in Masterton and South Wairarapa is on the rise after both districts saw listing views increase 15 per cent and 32 per cent on last year respectively.”

Mr Jeffries said all signs are indicating that property prices in Wellington are in for a very hot summer. 

Mixed bag in the region

“Property prices in five regions hit new highs in September after all but two regions saw year-on-year growth. The average asking price in Manawatu/Whanganui, Nelson/Tasman, Otago, Southland, Waikato broke records in September while average asking prices in West Coast and Auckland dipped.” 

“The national average asking price remained relatively stable year-on-year after a 0.7 per cent increase to $650,050.”

Mr Jeffries said there was a solid increase in demand for properties across the country in September with listing views climbing 7 per cent on last year. Stock, on the other hand, was down 12 per cent on last year. 

Waikato property market runs hot

“The average asking price in Waikato rose 7.9 per cent or $43,000 on the year to September to reach a new high of $597,250 as the Waikato property market runs hot.”

Mr Jeffries said property prices in the region have increased as more people look to move out of the main centres. “The number of views on property listings in Waikato rose 14 per cent on last September as interest grows in the region and prices rise. Hamilton was driving much of this interest and the city saw an 18 per cent increase in listing views year-on-year.

“The average asking price in Hamilton City rose 8.8 per cent on the year prior to a record of $630,250.”

Apartments, townhouses and units are popular in Wellington and Christchurch

“All urban property types (apartments, townhouses and units) in Wellington saw average asking prices increase on the year prior with townhouses and apartments reaching new record.

“Outside Auckland, townhouses and units hit a new high in terms of average asking price in September.” 

Large houses (5+ bedrooms) in Christchurch crack $1 million mark

“The average asking price for large houses in Wellington and Christchurch reached a new high after climbing 8.4 per cent and 23.3 per cent year-on-year. This is the first time large houses in Christchurch have cracked the million dollar mark with an average asking price of $1,001,550.”

Mr Jeffries said all house sizes in Auckland saw an annual dip in average asking price.  

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.