The New Zealand property market is heating up for summer, ten of New Zealand’s fifteen regions hit record average asking prices in October, according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said the total number of views on property listings climbed 12 per cent on the month prior as a flurry of buyers hit the market in October.
“Buyers and sellers sprung into action in October, we saw a surge in demand as well as a spike in new listings. The number of properties for sale on Trade Me rose 9 per cent on September. However, despite this increase, demand is still outstripping supply which means prices are climbing. Great news if you’re looking to sell your property this summer.
“The Bay of Plenty, Canterbury, Hawke’s Bay, Manawatu/Whanganui, Nelson/Tasman, Northland, Otago, Southland, Waikato and Wellington, all saw record high asking prices in October while the national average asking price rose 1.2 per cent year-on-year to $672,600.”
Wellington smashes record
“Christmas has come early for homeowners in the capital after the average asking price reached a new record, thanks to a solid 11 per cent annual increase to $669,200 - that’s a $67,000 jump on October 2018.
“With plenty of interest from buyers, property prices in Wellington look set to continue their upward trend for the rest of the year.”
Mr Jeffries said there was a 20 per cent lift in the total number of views on Wellington property listings in October and a 14 per cent jump in the number of property listings for sale when compared to September.
“Taking a closer look at the region, properties in Porirua and the Kapiti Coast both saw some significant double-digit annual price growth. However, it was South Wairarapa that took the top spot for year-on-year growth after the average asking price jumped an eye-watering 27 per cent on last October to $648,700,” he said.
|District||Average Asking Price
|Lower Hutt||$602,400||Up 7.8%|
|Upper Hutt||$574,550||Up 6.4%|
|Kapiti Coast||$635,700||Up 13.5%|
|South Wairarapa||$648,700||Up 27%|
Auckland market stabilising
Mr Jeffries said the Auckland property market is showing signs that it may be stabilising after six months of uncertainty.
“In October we saw an 8 per cent jump in listings and a 3.9 per cent rise in average asking price to $916,850 when compared to September. This reverses the situation we saw earlier in the year which will come as a relief for homeowners and indicates that the Auckland market may have found its rhythm again after some slow months.
“Prospective buyers in Auckland still have plenty of reason to smile this month with plenty of properties on the market to choose from and lower prices than 12 months ago.”
Mr Jeffries said when compared to the year prior the average asking price in Auckland dipped 3.1 per cent in October.
Property prices in Canterbury crack half-a-million-dollars
“The average asking price in Canterbury hit a new high in October, cracking the half-a-million-dollar mark for the first time after a 4.5 per cent increase to $502,800.
“Property prices in Canterbury have hovered around the $480,000 mark for the last couple of years but this new record could be a sign of things to come.
“We reckon Canterbury’s property market will see some strong price growth in 2020 demand is strong and after a long quiet period there are signs the region is starting to see a shift in the market.”
Prices for all houses sizes rise in Wellington
“Wellington took the cake for the largest price increase across all house sizes. The average asking price for large houses (5+ bedrooms), medium houses (3-4 bedrooms) and small houses (1-2 bedrooms) in the capital all reached a new high in October after some significant double-digit growth.”
Mr Jeffries said houses in Christchurch were also in hot demand and reached a new record in October.
Townhouses, apartments and units hit new high
Mr Jeffries said the average asking price for apartments, townhouses and units in Wellington, and Christchurch, hit a new record in October after experiencing an 11 per cent and 11.5 per cent jump respectively.
“Thanks to some new apartment developments in Christchurch, we saw the average asking price of an apartment in the Garden City jump 49 per cent on the year prior.”
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.