Wellington property prices crack $600,000 for the first time

Wellington’s average asking price cracked the $600,000 mark for the first time after climbing 9.9 per cent on last year to reach $602,950, according to the latest Trade Me Property Price Index.

Head of Trade Me Property Nigel Jeffries said it’s full steam ahead for the Wellington property market as it continued its upward trend in October with many districts in the region breaking records. “The latest rateable value update by Wellington City Council has seen the average RV climb about 45 per cent which is incredible growth in just three years. While homeowners will be happy, those people trying to get their foot on the first rung of the Wellington property ladder will be finding it much harder.

“In the last six months, the average asking price in Wellington has jumped up a solid $31,550 and while this rate of growth can’t continue forever, it looks set to stay for the foreseeable future.”

Mr Jeffries said Wellington Central (up 9.4 per cent on last year to $721,450), Porirua (up 13.4 per cent to $640,450) and Upper Hutt (up 11 per cent to $539,850) reached new highs, while Lower Hutt (up 8.4 per cent to $559,050) remained at September’s high.

Medium size house (3-4 bedrooms) prices have risen the most in the Wellington region, with the average asking price hitting a new high of $637,550, up 11.9 per cent on October last year.

National asking price springs into action

Mr Jeffries said the national average asking price hit a new high in October, climbing 6.6 per cent on last year to $664,950 as spring continues to work its magic on the property market.

“Every region in the country saw property prices increase on 2017 with nine out of 15 regions reaching new record asking prices in October, including Auckland ($946,400), Canterbury ($481,050), Otago ($567,950), Waikato ($570,900) and Wellington ($602,950).

“Prices rise when demand outstrips supply which is what we’re seeing across the country. This is despite far more houses coming onto the market than last year, in October there was a 14 per cent boost in the number of properties for sale compared with 2017.”

Mr Jeffries said Queenstown “stood out like an expensive sore thumb” in October. “The average asking price in the district increased 16 per cent on last year, to reach a record average asking price of $1,347,450.”

Wanaka also saw a significant 23 per cent bump to hit $1,069,750.

Auckland properties fetch record asking price

“The average asking price in Auckland reached a new record in October and is now within a whisker of $950,000, climbing 3.2 per cent on last year to $946,400. After the winter lull, we typically see the property market bounce back in spring which is a busy time for buyers and sellers, and this year has been no different.”

Mr Jeffries said there had been a large increase in the number of properties for sale in the Super City. “Buyers in the Auckland region have plenty to choose from at the moment with 23 per cent more properties onsite than last year.

“In Auckland City, the average asking price rose a solid 6 per cent on the year prior to reach a new record at $1,081,650. Small houses are proving popular in the region, hitting a new high of $643,800 after rising 5.6 per cent on last year.”

Small houses (1-2 bedrooms) see solid growth
Mr Jeffries said across the country, small houses (1-2 bedrooms) are becoming increasingly popular with Kiwis as average asking prices continue to rise.

“Small houses are a more affordable way to enter the market, particularly when prices are high like they are now. The average asking price for a small house was up 10.9 per cent on 2017 to $460,450.”

Urban properties the hot favourite in Wellington
“With rising house prices in the Wellington region, some Kiwis are looking at smaller properties such as apartments, townhouses and units. The average asking price for urban properties (apartments, townhouses and units) in Wellington was up 10.4 per cent on the year prior to $484,100 in October.”

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.