New Zealand Property Prices Retreat Two Years

The national average asking price has retreated with property prices returning to what we saw in August 2021, according to the latest Trade Me Property Price Index.

House prices are $130,400 less than the March 2022 peak, with the national average asking price sitting at $841,050 in June, Trade Me Property Sales Director Gavin Lloyd said.

“New Zealand’s average asking price hit a record high of $971,450 in March 2022, but since then prices have continued to cool. In June, property prices were down 9 per cent on the year prior. If we look closer at a regional level, some prices have retreated more than the national average.”

In the Auckland region, the average asking price in June reflected what we last saw in March 2021 at $1,054,750, while in Wellington, prices have returned to levels first seen in February 2021 at $813,200. In Canterbury, prices cooled to $685,750, a figure we last saw in December 2021.

“Prices are still going down, but the rate of this decline is easing. These trends suggest that now is a good time to buy if you have the deposit behind you,” Mr Lloyd said.

Wellington sees the biggest drop

One of the country’s biggest property markets seems to be easing up, with Wellington’s average asking price retreating to what we saw in February 2021.

The average price in Wellington is down from $936,300 in June 2022 to $813,200 now – a 13 per cent drop.

Wellington listings have slowly declined in average price every month since June last year, reducing by $123,100 over the 12 month period.

“Wellington has been one of the most heated property markets over the past few years, but this appears to be slowing down with a continuing trend of decline over the last six months,” Mr Lloyd said.

“The capital certainly had some of the biggest price jumps during the peak of the market, so it makes sense it is now seeing a greater rate of decline compared to other New Zealand regions. This is the market correcting itself after the big swings we’ve seen in the region over the past few years.”

Winter chills and fewer open homes

Supply and demand cooled in June, a traditionally quiet winter period, with a slight decline in both listings and interest.

“Although winter is typically a slower period, listings are down 6 per cent compared to June last year. This is also typical market behaviour when we are in an election year as sellers wait for certainty about what’s ahead,” said Mr Lloyd.

Wellington in particular is seeing much fewer listings, down 29 per cent compared with listings seen in June 2022.

Nationwide demand was down 4 per cent on June last year, with some buyers keeping an eye on the market as prices continue to ease.

Larger houses and apartments in Christchurch bucking the trend

Despite almost all house sizes seeing a drop in average asking price, larger homes with more than five bedrooms in Ōtautahi bucked the trend.

Five plus bedroom homes in Christchurch were up almost 8 per cent year-on-year, with an average sale price of $1,219,800.

Apartments in Christchurch are also in demand, up 9 per cent on last month.

“We often see demand for a specific type of property driving demand and pricing in some markets, and apartments and larger homes in Christchurch are proving to still be very popular,” said Mr Lloyd.

Across the board, townhouses, apartments and units continue to be popular in urban centres. With the exception of units in Wellington down 20 per cent in asking price, at an average of $553,400.

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