Auckland property prices tumble

Auckland property prices continued to tumble in July after the average asking price fell 2.2 per cent on last year to $875,450, the lowest average asking price since September 2016, according to the latest Trade Me Property Price Index. 

Trade Me Property’s Aaron Clancy said the average asking price in Auckland has fallen almost $71,000 from their peak in October 2018. “This is the fourth consecutive month that property prices have dipped in the Super City, after years of eye-watering price increases the heat has well and truly been taken out of the Auckland property market. 

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“First home buyers in Auckland will be breathing a sigh of relief as it’s now a little bit easier to get a foot on the Auckland property ladder. With interest rates hitting  all-time lows and property prices dipping it’s not surprising that we saw a surge of demand for Auckland properties in July, with listing views up 10 per cent on last year.” 

Mr Clancy said taking a closer look at the region, the average asking price in Auckland City fell below the $1 million mark for the first time in almost a year to $987,250, dipping 0.4 per cent on last year. The average asking price in North Shore City fell 1.4 per cent to $1,081,300 and Waitakere City dipped 0.7 per cent to $799,250 in July.

    

Wellington property market runs hot in the middle of winter

Mr Clancy said in stark contrast to Auckland, homeowners in the capital have plenty of reason to celebrate this month after the average asking price in Wellington rose 9.4 per cent year-on-year to $636,250.

“It’s full steam ahead for the Wellington property market after average asking prices rose $54,750 in just 12 months. 

“Since July 2014 average asking prices in the Wellington region have jumped 54 per cent. It’s not showing any sign of slowing down either, with the last two years seeing the most rapid increases. With the spring selling season around the corner we expect to see a flurry of activity in the market and we think more record asking prices are likely in the capital.”

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Mr Clancy said while every district saw a solid year-on-year increase, the big movers in Wellington were those just outside the central city. 

“Property prices in Porirua and Upper Hutt saw strong double-digit growth in July, with the average asking price jumping 15 and 14.5 percent respectively.”

District Average Asking Price
(July 2019)
Year-on-year change
Wellington   $760,050 + 9.0%
Lower Hutt $587,150 + 7.6%
Upper Hutt $602,900 + 14.5%
Porirua $704,350 + 15%
Kapiti Coast $596,850 + 8.3%
Masterton $418,650 + 6.0%
Carterton $473,700 + 5.9%
South Wairarapa $522,950 + 14.3%

“Some homeowners cashed in in July with 7 per cent more listings onsite than the year prior. Interest in Wellington property listings also remained strong in the middle of winter with the number of views up 7 per cent year-on-year.”

     

Mixed bag in the regions

“While the national average asking price remained stable in July, rising a modest 0.9 per cent on last year to $638,500, the regions were a mixed bag.

“Homeowners in Manawatu/Whanganui, Otago and Southland have plenty of reason to smile after all three regions experienced strong double-digit growth and new records. Gisborne was another strong performer with property prices jumping 18 per cent year-on-year to $360,800.

“Taranaki and Auckland, on the other hand, experienced a dip in average asking price,” said Mr Clancy.  

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Hamilton’s property market stays strong

Mr Clancy said demand for properties in Hamilton is on the rise as more Kiwis look to buy in the ‘halo’ regions around Auckland. “Hamilton is experiencing a surge of demand with the number of views on property for sale rising 11 per cent on last year. 

“Asking prices in Hamilton have risen in line with price growth in the Waikato region, with the average asking price climbing 7 per cent to $611,350 in July.

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Auckland houses take a hit

“Property prices across every house size in Auckland fell in July with large houses (5+ bedrooms) taking the largest hit, falling 6 per cent.”

Mr Clancy said medium houses (3-4 bedrooms) in Wellington saw the largest increase of any house size, jumping almost 11 per cent on last July to $673,050.

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Townhouses in Wellington reach record

“Townhouses in Wellington rose a solid 17 per cent to a record $629,000 in July thanks to several new developments in the area.

“Overall, urban properties nationwide remained stable in July with the average asking price rising 1.3 per cent to $562,250,” added Mr Clancy.

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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.