Property Prices Increase By Double New Zealand’s Average Salary

The average asking price for a house in New Zealand reached an all-time high of $846,900 last month, growing by 21 per cent on the previous year, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said despite the Level 4 lockdown property prices charged ahead in August, marking the largest annual increase on record and 12 months of double-digit growth as prices increased $143,950 on the same month last year. “According to our latest Trade Me Jobs data, this increase is 2.2 times the national average salary, which is sitting at $64,939 as of Q2 (April-June) this year.

“As expected, the Covid-19 Alert Level restrictions had a significant impact on market supply and demand in August which comes as no surprise considering you cannot buy or sell a house under the Level 4 restrictions.”

Mr Lloyd said August saw a 31 per cent drop in the number of properties listed for sale onsite when compared with the same month in 2020. Demand also dropped by 24 per cent year-on-year last month, mirroring what we have seen in past lockdowns.

Looking around the country, Mr Lloyd said record average asking prices were seen in every region. “The largest jumps were all seen in lower North Island regions of Manawatū/Whanganui (up 30 per cent to $589,350), Wellington (up 26 per cent to $867,050), and Hawke’s Bay (up 23 per cent to $737,050).”

Looking ahead, Mr Lloyd said the market was expected to make a swift recovery. “New Zealand’s property market has been running hot since we came out of lockdown in 2020, despite many predicting we would see it slow down. As we’ve seen after previous lockdowns, we’re expecting listing numbers will make a quick recovery as restrictions are lifted and we move down alert levels.”

Wellington prices increase by more than a quarter in 12 months

Mr Lloyd said the average asking price in the Wellington region climbed 26 per cent or $177,550 on August last year to $867,050 last month. “Looking at Wellington City, the average asking price was $944,050, making it the most expensive district in the region.

“The second most expensive Wellington district was Porirua which entered the $900,000 bracket for the first time at $929,000.”

Most expensive districts in the Wellington region - August 2021 (*new record)

Mr Lloyd said the lockdown meant market supply in the Wellington region dropped by 18 per cent year-on-year. “Interestingly, demand in the region was down by 35 per cent, the biggest drop of all regions.”

The most popular property for sale in the country last month was a two-bedroom house on Wilton Road in Wilton. “It had an asking price of $625,000 and received 372 watchlists in its first two days onsite.”

Auckland reaches new record

The average asking price in the Auckland region reached a record $1,104.200 in August. “Looking at Auckland City, the average asking price was slightly higher at $1,186,400, making it the fourth most expensive district in the region."

The three most expensive districts in Auckland in August were Waiheke ($1,718,500) and North Shore City ($1,298,800).

Most expensive districts in the Auckland region - August 2021 (*new record)

Mr Lloyd said, as seen in the rest of the country, supply in the Auckland region was down 20 per cent year-on-year in August, while demand was down 29 per cent.

Last month’s most popular Auckland property was a three-bedroom house on Caspian Close, New Lynn, with an asking price of $700,000. “It was watchlisted 288 times in its first two days onsite.”

Record asking prices for small and medium sized houses

Mr Lloyd said nationwide, small houses (1-2 bedrooms) and medium houses (3-4 bedrooms) saw their highest ever average asking price in August. “Small houses saw the largest year-on-year percentage increase of 28.5 per cent.”

Mr Lloyd said urban properties saw their highest ever asking price nationwide in August, reaching $712,950. “The average asking price for a townhouse saw the biggest increase, up 27 per cent on the same month last year and reaching an all-time high of $832,900.”

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