Property prices outside New Zealand’s three biggest centres continued its charge in April, up 6.4 per cent on last year to a new record of $505,650, according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said March was no fluke. “We’re seeing a significant shift for the regions outside Auckland, Wellington and Christchurch, asking prices are shooting up while the cities are pausing for breath.
“The majority of the jump is being driven by the halo regions around Auckland with record average asking prices in the Bay of Plenty (up 4.6 per cent on last year to $615,100) and Waikato (up 5.9 per cent to $550,400). Elsewhere, Taranaki has also pushed prices up and jumped 9.6 per cent to a record $422,100.
“They’re not going to catch Auckland by any means, but they are surging along as these regions become a more attractive work/life balance option, provide investment opportunities or long-haul commuter suburbs for parts of Auckland.”
Good news for buyers
Mr Jeffries said there was also good news for buyers, with the number of properties for sale jumping 9 per cent on last April. “Buyers have more choice and we’ve seen demand cool off since earlier in the year, with the average number of views up just 0.8 per cent on last April.
“Buyers have had stiff competition out there in recent months, but these numbers indicate it will be a little easier for now, which we expect in winter.”
Auckland property prices stabilise
“After two consecutive months of stalling, the average asking price in Auckland increased in April, lifting 1.9 per cent on March to $930,150,” Mr Jeffries said.
This growth was led by the most popular properties on the market: medium houses (3-4 bedrooms) reached $950,000 and were up 2.5 per cent on last year. “These properties are highly sought after by families, they’re a great size for the traditional New Zealand home and they’re still very popular, ” Mr Jeffries said.
“In April, the number of properties for sale in the Super City was 9 per cent higher than last April, and 38 per cent more than April 2016 which will come as welcome news for first home buyers.”
Wellington prices cool
Mr Jeffries said property prices in Wellington eased in April after falling 0.1 per cent on March to $571,400.
“Homeowners don’t need to panic though, large houses (5+ bedrooms) and small houses (1-2 bedrooms) have seen solid double-digit growth in the last 12 months, climbing 19.3 per cent to $984,650 and 15.4 per cent to $479,350 respectively.”
Medium and small houses reach new high
Mr Jeffries said the average asking price for both medium (3-4 bedrooms) and small (1-2 bedrooms) houses reached a new high in April, climbing 0.4 per cent year-on-year to $644,150 and 2.3 per cent to $446,300 respectively.
“Away from the three main centres, Wellington saw with the largest annual increases in all house sizes in April with an overall increase of 5.4 per cent to $571,400.”
Table 1: Average asking price by property size & region, April 2018 vs April 2017
Apartments popular outside Auckland
“Apartment prices outside Auckland have experienced solid growth over the last 12 months, climbing 11 per cent to $563,850. Apartments are a good option for first home buyers as they are typically warmer, drier and require less maintenance so they offer a more affordable option in the current property climate,” Mr Jeffries said.
Apartments, townhouses and units across New Zealand were popular in April, climbing 1.4 per cent on the month prior to a record asking price of $557,900.
Table 2: Average asking price by property type & region, April 2018 vs April 2017
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.