Property prices see largest increase on record

Property prices see largest increase on record following 11 months of double-digit growth

New Zealand property prices saw unparalleled growth in July, with the national average asking price seeing its biggest year-on-year jump ever to reach an all-time high of $834,000, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said last month the national average asking price increased by 19 per cent year-on-year. “Following eleven consecutive months of double-digit annual price growth, July’s 19 per cent jump is the largest increase on record.

Mr Lloyd said looking across the regions, record average asking prices were seen in Auckland, Bay of Plenty, Canterbury, Hawke’s Bay, Manawatū/Whanganui, Southland and Waikato.

Nationwide demand was down 16 per cent year-on-year in July. “This is the third month in a row we saw a drop in demand when compared with the same month in 2020. However, July also marked a 26 per cent decrease in supply when compared to the same month last year, meaning the market is still under pressure and as a result house prices are continuing to rise.

“Looking ahead, we’re seeing no signs that prices will slow, especially with the Reserve Bank’s announcement today that they will leave interest rates where they are for the time being.”

Wellington prices climb

Mr Lloyd said the average asking price in the Wellington region climbed 8 per cent on July last year to $60,400 last month. “The average asking price in Wellington City was notably higher, at $937,650, making it the most expensive district in the region.

“The second most expensive Wellington district was Porirua ($896,450), followed by Kapiti Coast ($875,500).”

Most expensive districts in the Wellington region - July 2021

Mr Lloyd said a lack of properties for sale was behind price increases in the region. “Supply has long been a problem in Wellington and in July the number of houses for sale was down 11 per cent on the same time last year.

“Interestingly, demand in the region was down by 23 per cent year-on-year as prospective buyers took a breath while winter temperatures set in. This drop in demand played a role in Wellington’s average asking price seeing a 0.5 per cent decrease in July when compared with the month prior.”

The most popular house in the region last month was a three-bedroom spot on Liffey Crescent in Island Bay. “It had an asking price of $900,000 and received 292 watchlists in its first two days onsite.”

Auckland average hits $1.1m for the first time

The average asking price in the Auckland region hit the $1.1m mark for the first time in July, sitting at $1,101,250. “Looking at Auckland City, the average asking price was slightly more at $1,209,850, making it the third most expensive district in the region.”

The most expensive districts in Auckland in July were Waiheke ($1,781,200) and North Shore City ($1,294,850).

Most expensive districts in the Auckland region - July 2021

Mr Lloyd said supply in the Auckland region was down 16 per cent year-on-year in July. “Demand was also down by 20 per cent when compared with the same month last year, but after months of pent up demand in the region it would take a more consistent drop in demand before prices are impacted.”

July’s most popular Auckland property was a three-bedroom house on Great North Road, Waterview, in Auckland City, with an asking price of $900,000. “It was watchlisted 360 times in its first two days onsite.”

Record asking prices for houses of all sizes

Mr Lloyd said nationwide, small houses (1-2 bedrooms), medium houses (3-4 bedrooms), and large houses (5+ bedrooms) saw their highest ever average asking price in July. “Small houses saw the largest year-on-year percentage increase of 27 per cent.”

Mr Lloyd said urban properties saw their highest ever asking price nationwide in July, reaching $697,700. “The average asking price for a townhouse in New Zealand rose 26 per cent on July last year to an all-time high at $817,500.”

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