Property prices keep climbing in the provinces

Property prices keep climbing in the provinces

Property prices outside New Zealand’s three biggest centres continued its charge in April, up 6.4 per cent on last year to a new record of $505,650, according to the latest Trade Me Property Price Index.

Head of Trade Me Property Nigel Jeffries said March was no fluke. “We’re seeing a significant shift for the regions outside Auckland, Wellington and Christchurch, asking prices are shooting up while the cities are pausing for breath.

“The majority of the jump is being driven by the halo regions around Auckland with record average asking prices in the Bay of Plenty (up 4.6 per cent on last year to $615,100) and Waikato (up 5.9 per cent to $550,400). Elsewhere, Taranaki has also pushed prices up and jumped 9.6 per cent to a record $422,100.

“They’re not going to catch Auckland by any means, but they are surging along as these regions become a more attractive work/life balance option, provide investment opportunities or long-haul commuter suburbs for parts of Auckland.”

Good news for buyers

Mr Jeffries said there was also good news for buyers, with the number of properties for sale jumping 9 per cent on last April. “Buyers have more choice and we’ve seen demand cool off since earlier in the year, with the average number of views up just 0.8 per cent on last April.

“Buyers have had stiff competition out there in recent months, but these numbers indicate it will be a little easier for now, which we expect in winter.”

Auckland property prices stabilise

“After two consecutive months of stalling, the average asking price in Auckland increased in April, lifting 1.9 per cent on March to $930,150,” Mr Jeffries said.

This growth was led by the most popular properties on the market: medium houses (3-4 bedrooms) reached $950,000 and were up 2.5 per cent on last year. “These properties are highly sought after by families, they’re a great size for the traditional New Zealand home and they’re still very popular, ” Mr Jeffries said.

“In April, the number of properties for sale in the Super City was 9 per cent higher than last April, and 38 per cent more than April 2016 which will come as welcome news for first home buyers.”

Wellington prices cool

Mr Jeffries said property prices in Wellington eased in April after falling 0.1 per cent on March to $571,400.

“Homeowners don’t need to panic though, large houses (5+ bedrooms) and small houses (1-2 bedrooms) have seen solid double-digit growth in the last 12 months, climbing 19.3 per cent to $984,650 and 15.4 per cent to $479,350 respectively.”

Medium and small houses reach new high

Mr Jeffries said the average asking price for both medium (3-4 bedrooms) and small (1-2 bedrooms) houses reached a new high in April, climbing 0.4 per cent year-on-year to $644,150 and 2.3 per cent to $446,300 respectively.

“Away from the three main centres, Wellington saw with the largest annual increases in all house sizes in April with an overall increase of 5.4 per cent to $571,400.”

Apartments popular outside Auckland

“Apartment prices outside Auckland have experienced solid growth over the last 12 months, climbing 11 per cent to $563,850. Apartments are a good option for first home buyers as they are typically warmer, drier and require less maintenance so they offer a more affordable option in the current property climate,” Mr Jeffries said.

Apartments, townhouses and units across New Zealand were popular in April, climbing 1.4 per cent on the month prior to a record asking price of $557,900.

ENDS

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