The Property Price Index provides a monthly analysis of the national and local property market. The index tracks the asking price of properties listed in the past three months, based on size and type of property, to assist you on the next step towards buying or selling a home.
Christmas has come early for many Kiwi homeowners after the national average asking price climbed 2.5 per cent on last month to $639,150, according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said all but one of New Zealand’s 15 regions increased year-on-year in November with eight regions reaching record average asking prices. “This is the second month in a row where we have seen the average asking price warm up after an unusually slow five months, it’s a good sign that the property market has finally bounced back after the election.”
Mr Jeffries said buyers across the country are snapping up homes and quick. “The average number of views on each Trade Me Property listing jumped 15 per cent on last November and despite a 5 per cent increase in new listings on this time last year, the number of total listings onsite is actually down 7.7 percent on last year because properties are coming on and off the market much faster than usual.”
“It’s a clear indication that demand is outstripping the number of available properties.”
Homeowners outside Auckland have plenty of reason to celebrate after the average asking price for properties outside the Super City reached a new high for the second month in a row, up 5.4 percent to $497,000.
Regions run hot
“Eight regions across New Zealand reached a record average asking price in November with only Gisborne showing a dip, down 8.1 per cent,” said Mr Jeffries.
Southland, Hawkes Bay and Wanganui were among those that reached record average asking prices, rising 13.1 percent to $286,600, 12.2 percent to $495,450 and 11.6 percent to $322,850 respectively. This was followed by Wellington (up 10.8 per cent $563,850), Waikato (up 7.5 percent to $538,600), Nelson (up 4.4 percent to $558,900), Auckland (up 3 per cent $938,800) and Canterbury (up 1.8 percent to $478,650).
“Northland and Taranaki are the regions to watch as we head into the New Year with over 30 per cent more views on each listing than last year. Properties in Hawkes Bay, Nelson and Southland are also in hot demand with average views up 26, 23 and 22 per cent respectively,” he added.
Christmas cheer for Wellington homeowners
After the election cooled property prices in the capital, the Wellington property market heated up in November with the average asking price rising 10.8 per cent on last year to a new record of $563,850.
“Over the last two months we have seen a surge of new listings in the capital as sellers shake off those election jitters and put their house up for sale. We’re also seeing plenty of buyers in the windy city. The number of views per listing was up 12 percent and total listings onsite at the end of November were 3.6 percent lower than 2016.
“Homeowners outside Wellington city have plenty of reason to celebrate these holidays after the average asking price jumped more than 15 per cent in some areas. The average asking price in Upper Hutt climbed 20.1 percent to $507,800 and Porirua, Kapiti Coast and South Wairarapa saw increases of more than 15 per cent since November 2016,” he added.
Auckland climbs to new record
Mr Jeffries said the average asking price in Auckland reached a new high in November, climbing 3 per cent to $938,800.
“November was the fourth consecutive month where the number of people looking at Auckland property listings had been higher than the previous year, up 16 per cent, and if this trend continues next year anyone looking to buy will continue to face steep competition,” he added.
Supply struggles to meet demand outside Auckland
The average asking price outside Auckland continues to creep closer to half a million dollars after it climbed 5.4 per cent on last year to a new high of $497,000.
“Outside the Super City, supply is struggling to meet demand with total listings down 12 per cent on last year and down 32 percent on November 2015. If this continues, we can expect to see some big jumps in the coming months.”
Large houses gain momentum
Mr Jeffries said while small (1-2 bedrooms) and medium (3-4 bedrooms) houses continue to be the most popular house type across the country, large houses (5+ bedrooms) reached a record average asking price of $1,153,700 in November.
Large houses are the hot favourite in the capital, increasing 16.5 percent to $951,550. Small houses have increased 4.8 percent to $422,100 and medium houses were up 2.9 percent to $638,850.
Table 1: Average asking price by property size & region, November 2017 vs November 2016
Apartments popular in the main metros
Mr Jeffries said apartments in the three main metros have all experienced a strong annual increase.
“The average asking price for apartments across the country rose 4.1 per cent to $582,900 in November and most of this has been a result of apartments in the Garden City which rose 11.3 per cent in the last 12 months to $463,650,” he said.
Table 2: Average asking price by property type & region, November 2017 vs November 2016
About the Trade Me Property Price Index
The Index is a detailed analysis of expected sale price. Listings are from private advertisers and real estate agents.
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 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. This excludes the upper and lower 10% of listings by price, and averages the expected sale prices of the remaining properties.
It is the first report to provide an insight into 'for sale' price trends by type and size of property. Other reports tend to aggregate the property price data across these various properties.