March was a very strong month for property prices across New Zealand with every region experiencing an annual increase and seven regions reaching new records, 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 10 per cent on the year prior and this increased demand was pushing prices north.
“With interest rates at an all-time low and some predicting they could fall even lower, a growing number of Kiwis are looking at getting a foot on the property ladder.”
Mr Jeffries said the national average asking price climbed 6.2 per cent year-on-year to $676,150. March was a solid month right across the country with Wellington ($656,100), Canterbury ($497,000), Bay of Plenty ($649,550), Manawatu/Whanganui ($371,700), Otago ($587,350), Southland ($320,700) and Waikato ($580,650) all hitting new records.
“The Wellington property market continues to be the stand out and contributed significantly to the nation’s year-on-year growth in March.”
Wellington property market charges on
Mr Jeffries said the stellar growth in Wellington continued in March, with the region reaching a new record average asking price at $656,100, up 14.8 per cent on last year when it was $571,650.
“Homeowners in the capital have plenty of reason to smile this month, following an annual asking price increase of almost $85,000.
Mr Jeffries said Masterton has seen a solid annual increase of 18.2 per cent to $423,950, followed by Lower Hutt which was up 13.7 per cent to a record $613,000. Upper Hutt rose 9.6 per cent to $555,400, Porirua lifted 7.7 per cent to $635,150 and property prices in Wellington City climbed 8.5 per cent to an all-time high of $770,200.
“Throughout the Wellington region, both demand and supply increased in March with the number of listings up 6.4 per cent on the year prior while the total number of views were up 8 per cent.”
Auckland house prices cool
“Auckland house prices continued to ease in March as property prices in the region retreat.”
Mr Jeffries said while March saw a modest increase of 1.4 per cent on the year prior, the average asking price in Auckland has fallen $25,000 since its peak in October to $925,550.
“There’s no doubt the Auckland property market has taken a backseat in recent months after years of remarkable growth and it looks like Wellington has taken the spotlight.
“Taking a closer look at the Auckland region, property prices in Waiheke Island saw the biggest dip, after dropping 18.8 per cent year-on-year to $1,131,850, the lowest in five months. The average asking price in Rodney fell 2 per cent on last year to $1,000,800, while Papakura slipped 1.6 per cent to $693,900. Property prices in Auckland City saw a 5.9 per cent lift year-on-year to reach $1,079,400, however, that was down from November’s high of $1,124,100.”
Mr Jeffries said the supply and demand equation has finally leveled out in the Auckland region. “In March, the total number of views on properties for sale was up 8.3 per cent on the year prior while listings onsite rose 9 per cent.
“This is great news for prospective buyers. With prices slowing, more stock on the market and interest rates at a record low, now is a good time to buy in Auckland if you have the deposit behind you.”
Hawke’s Bay property in hot demand
“Property prices in the Hawke’s Bay are in hot demand with the total number of views up a staggering 30 per cent on last year - the highest regional demand growth in the country.
“Growing demand for property in the Hawke’s Bay is pushing prices north and led to an annual increase of 5.2 per cent to $546,900.”
Mr Jeffries said the number of properties available for sale in the region skyrocketed in March rising 35 per cent on the year prior.
Large houses nationwide slow
Mr Jeffries said the average asking price for large houses (5+ bedrooms) slowed across the country in March.
“Large houses in Auckland fell almost 4 per cent to $1,347,050 in March - down $54,000 on the year prior. Medium houses (3-4 bedrooms) in Wellington saw the largest increase of 17.1 per cent to a record $689,050,” he said.
Urban properties soar in Wellington
“The average asking price for apartments, townhouses and units in Wellington jumped in March, climbing an eye-watering 26 per cent year-on-year to a record $535,250.
“Out of the three types of urban properties, townhouses were the pick of the bunch for Wellingtonians in March after climbing almost 30 per cent to $611,350,” said Mr Jeffries.
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.