Wellington Average House Price Hit $1m, Other Parts Of The Country Not Far Behind

The average asking price in Wellington City reached an all-time high of $1,028,400 last month, cracking the $1m bracket for the first time, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said the average asking price in Wellington City has been heading towards the $1m mark for some time. “We have seen prices in the district increase by at least 10 per cent year-on-year consistently over the past twelve months as supply has struggled to keep up with unrelenting high demand. Unfortunately for first home buyers, buying a property in the capital is now that much harder.”

Mr Lloyd said it is the same story in the wider Wellington region, with other districts also seeing a record breaking month in October. “The average asking price in the Wellington region was $935,400 last month, moving into the $900k bracket for the first time.

“Average asking prices in Porirua ($988,059) and South Wairarapa ($959,900) also saw huge year-on-year increases and edged closer to $1m.”

When compared with October 2020, Mr Lloyd said demand for properties in the Wellington region dropped by 16 per cent and supply increased by 17 per cent last month. “However, this increase in supply was not enough to slow prices in the region following months of unparalleled growth and sustained high levels of market activity.”

Prices reach an all-time high in every region

The Capital’s remarkable price increases were echoed around the country last month, with every region seeing a record-high average asking price. “The largest annual increase in October was seen in the Manawatū/Whanganui region, where the average asking price increased by 35 per cent in just twelve months.

“Average asking prices in Hawke’s Bay ($817,600) and Nelson/Tasman ($818,250) were north of $800,000 for the first time last month, while the Bay of Plenty ($908,200) saw its average asking price enter into the $900,000 bracket.”

Mr Lloyd said October saw a 16 per cent drop in the number of properties listed for sale nationwide when compared with the same month in 2020. “By comparison the 4 per cent year-on-year drop in the demand was not big enough to alleviate price increases across the board.”

Looking ahead, Mr Lloyd said interest rate increases could see take the heat out of a very hot property market. “After months of speculation, we are now seeing banks increase mortgage rates and time will tell whether we see this impact the property market as we head into the typically busy summer period.”

Auckland prices see unprecedented growth

The average asking price in the Auckland region reached a record $1,118,250 in October. “Looking at Auckland City, the average asking price was an all-time high of $1,310,150, making it the fourth most expensive district in the region.”

The most expensive districts in Auckland in October were Waiheke ($1,707,450), North Shore City ($1,391,950) and Rodney ($1,322,550).

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

Mr Lloyd said, as seen around the rest of the country, supply in the Auckland region was down 14 per cent year-on-year in October, while demand was down 7 per cent as Covid-19 restrictions continued to impact the market.

Last month’s most popular Auckland property was a five-bedroom house on Grange Road, Mount Eden, with an asking price of $5,000,000. “It was watchlisted 351 times in its first two days onsite.”

Record high asking prices for all house sizes

Mr Lloyd said nationwide, houses of all sizes saw their highest ever average asking price in October. “Small houses saw the largest year-on-year percentage increase of 26 per cent to reach $677,650.”

Mr Lloyd said the national average asking price for urban properties (townhouses, apartments and units) reached a record high in October, at $741,550. “The average asking price for a townhouse saw the biggest increase of all urban property types, up 25 per cent on the same month last year and reaching an all-time high of $854,050.”

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