House Prices Increase By $100,000 In 12 Months

New Zealand’s national average asking price for property reached an all-time high of $784,450 in February, increasing by $106,550 when compared with the same month last year, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said February marked the sixth month in a row New Zealand’s average asking price reached an all-time high as the property market keeps it’s foot on the gas. “February was another month of immense growth, with prices showing no signs of slowing down.

“While homeowners will be pleased to hear property prices have climbed more than $100,000 in just one year, that house is now even further out of reach for first home buyers.”

Mr Lloyd said nationally demand was down 2 per cent year-on-year in February, while supply was down 15 per cent. “Despite both supply and demand showing a drop off when compared with the same month last year, demand continued to outstrip supply in February, pushing prices up.”

Looking ahead, Mr Lloyd said the Government’s recent housing announcement could see prices slow. “While it’s not totally clear yet what impact the Government’s housing package will have, we may see some increase in supply as investors rethink their property buying decisions with the bright-line test being extended and an increase in tax costs.

“In saying that, we would have to see a pretty remarkable increase in supply to see any relief in the short term. We expect to see the impact of this new legislation later in the year.”

Thirteen regions hit new record

Mr Lloyd said new record high average asking prices were set in every region around the country with the exception of Auckland and the West Coast. “We’ve never seen so many record highs in one month. It’s a sign of just how hot New Zealand’s property market is.

“The largest percentage increases were seen in Gisborne (31%) and Manawatū-Whanganui (22%). Asking prices in Wellington and Marlborough also increased by a solid 17 per cent year-on-year.”

Mr Lloyd said Northland had a standout month, breaking into the $700,000 bracket for the first time ever. “The regional average asking price reached an all-time high of $714,650 in February.”

While nationally year-on-year supply was down 15 per cent, some regions fared even worse. “The biggest drops in supply were seen in Northland (-35%), Bay of Plenty (-34%) and Nelson/Tasman (-13%). This had a direct impact on prices, with all three of these regions seeing average asking prices increase by at least 10 per cent.”

However, Mr Lloyd said some regions that saw an increase in supply also saw substantial price growth last month. “Interestingly, Otago (4%) and Auckland (4%) - the only two regions that saw a year-on-year increase in listings last month - also saw average asking prices increase thanks to extremely high demand.”

Auckland region average asking price steady at $1M+

Last month the average asking price in the Auckland region increased by 8 per cent when compared with February 2020, to $1,014,800. “We’re seeing Auckland property prices sit pretty comfortably around the $1M mark, where it’s been for the last five months.”

Looking at Auckland City alone, Mr Lloyd said the average asking price was $1,147,450 in February - a 5 per cent year-on-year increase. “This puts it in third place between the two most expensive districts in the Auckland region, Waiheke ($1,554,150) and North Shore City ($1,237,500).”

Most expensive districts in the Auckland region - February 2021

“Demand in the region was down by 3 per cent in February when compared to the year prior, while supply was up by 4 per cent, putting pressure on prices and causing them to climb.”

Mr Lloyd said the most popular property in the region last month was a three-bedroom house on Morrin Street in Ellerslie, Auckland City. “The house had an asking price of $1,200,000 and received 378 watchlists in its first two days onsite.”

Wellington prices grow by 17 per cent year-on-year

In the Wellington region, the average asking price reached $793,700 in February, up 17 per cent year-on-year. “Looking specifically at Wellington City, the average asking price reached $836,650 increasing by 9 per cent when compared with the same month last year.”

Mr Lloyd said after Wellington City, the next most expensive districts in the region were Porirua and Kapiti Coast.

Most expensive districts in the Wellington region - February 2021

“The most popular property in the country last month was on Orari Street, in Ngaio, Wellington. The three-bedroom house had an asking price of $1,000,000 and received 465 watchlists in its first two days onsite.”

Small houses reach new record

Asking prices for small (1-2 bedroom) and medium (3-4 bedroom) properties both reached record high prices last month. “Large houses (5+ bedrooms) were the only type that did not see an all time high average asking price in February.”

Urban properties hit new high

The national average asking price for urban properties (apartments, townhouses and units) reached a new record of $667,750 in February, up 14 per cent year-on-year. “National average asking prices for townhouses and units also reached all-time highs, at $735,000 and $530,300 respectively.”

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