Prospective home buyers are facing record property prices in Wellington after the average asking price climbed 12.3 per cent on last year to reach $593,250 according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said the Wellington property market isn’t showing any sign of slowing down. “In September 2016, the average asking price was $479,650 which means property prices in the capital have increased almost $115,000 (or 24 per cent) in 24 months. If this rate of growth continues, the Wellington property market could be discussed in similar terms to Auckland - though we’re some way away from seeing the massive numbers we’ve seen in our largest city.”
Mr Jeffries said around the Wellington region, Masterton had the biggest annual increase with a 20 per cent jump in average asking price to $408,850. The Hutt Valley saw record asking prices in September with Upper Hutt rising 15.5 per cent to $538,500 and Lower Hutt up 10.4 per cent to $559,300. The average asking price in Wellington City rose 8.5 per cent on the year prior to $700,400.
National asking price heats up
“Nationwide, the average asking price rose 2.3 per cent on August to $645,250 and every region saw a year-on-year increase as the country starts to warm up after winter.”
Mr Jeffries said Waikato also reached a record average asking price in September after climbing 4.7 per cent on last year to $553,650.
“Prices weren’t the only thing to spring into action, with a 9 per cent boost in listings onsite in September. This time of year is busy for real estate agents, as vendors who’ve been considering their options decide to take the plunge in spring when everything is looking its best.
“The average asking price in the South Island took off in September with Nelson/Tasman (up 12 per cent to $593,300), Otago (up 11 per cent to $533,050) and Southland (up 11 per cent to $283,900) all seeing strong double-digit growth.”
Auckland prices bounce back
Mr Jeffries said the average asking price in Auckland bounced back in September following the winter slump, climbing 2.6 per cent on last year to $917,150.
“Auckland City saw the largest increase with the average asking price climbing 7 per cent on last year to $1,022,000. Waitakere City saw record high asking prices, up 1 per cent on the year prior to $826,500.”
He added that buyers will be pleased to see more stock on the market in the region, with 18 per cent more listings onsite than last year.
Medium houses (3-4 bedrooms) in Wellington hit new high
“The average asking price for a medium house (3-4 bedrooms) in Wellington jumped 12.7 percent on last year to a record $624,950. Small houses (1-2 bedrooms) in the capital were also up a significant 14.2 per cent on last year to $466,450.”
Mr Jeffries said all house sizes in Auckland saw annual increases with small houses climbing 7.2 per cent, medium houses up 5.8 and large houses up 2.6 per cent.
Urban properties show solid growth
Mr Jeffries said apartments, townhouses and units across New Zealand showed solid growth in September with the average asking price jumping 4.9 per cent year-on-year to $548,000.
“We’re continuing to see more Kiwis downsize their home and first home buyers move into these urban properties, attracted by smaller mortgage repayments and less maintenance costs. Apartments are still the hot favourite with a 7.2 per cent increase in average asking price nationwide.”
Mr Jeffries said outside Auckland, units hit a new record high of $346,500, up 5.3 per cent on last year. In Wellington, townhouses hit a new record of $537,350 after climbing 7 per cent.
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.