Bay Of Plenty Beats Wellington To The $1m Mark

Property prices in the Bay of Plenty broke into the $1m bracket for the first time in February with the average asking price reaching a record-breaking $1,003,550, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd said the average asking price in the Wellington region was $23,000 behind the Bay of Plenty in February, at a record-breaking $980,500. “We’ve seen prices in both regions edge closer to the $1m mark over the past six months, and up until last month the Capital was in the lead.”

Mr Lloyd said the average asking price in the Bay of Plenty climbed a ‘whopping’ 29 per cent year-on-year in February which saw it overtake Wellington for the first time on record.

“The Bay of Plenty is now the second region in New Zealand to crack the million-dollar mark, coming in behind Auckland at $1,241,650.”

Wellington region and Bay of Plenty average asking prices - September 2021- February 2022

“This phenomenal growth comes down to more Kiwis looking to the regions to get more bang for their buck. It’s also likely that the pandemic and the move towards flexible, remote working has meant more Kiwis have the option to look further afield.

“We’ve seen strong demand in the Bay of Plenty consistently over the past couple of years, which is no surprise with the region having so much to offer. Being known for its warm weather, golden sandy beaches, lakes and rivers, you can see why the region is appealing to Kiwis.”

Mr Lloyd said Canterbury also had a standout month, entering the $700,000 bracket for the first time in February, with its average asking price increasing by a ‘staggering’ 33 per cent year-on-year to $709,150. “This was the largest percentage increase seen around the country last month.”

Property market supply at pre-Covid levels for the first time

In February, Mr Lloyd said the number of properties for sale nationwide increased by 22 per cent year-on-year, reaching pre-Covid levels for the first time since the pandemic took hold of the market in 2020.

“The biggest increases were seen in the lower North Island, with Manawatū/Whanganui supply almost doubling (up 82%) in February when compared with the same month last year, followed by Hawke’s Bay (up 74%) and Wellington (up 71%).”

Demand, on the other hand, dropped by 11 per cent year-on-year nationwide in February. “Nelson/Tasman (up 12%), Hawke’s Bay (up 11%) and Otago (up 8%) were the only regions to see an increase in demand for property in February.”

However, Mr Lloyd said the supply increase didn’t result in prices slowing in February, with the national average asking price for a property reaching an all-time high $958,850. “This marks a 23 per cent year-on-year increase. Looking around the country, record average asking prices were seen in every region country except Auckland last month.”

Wellington prices see a record-breaking month

In the Wellington region, February's all-time high average asking price of $980,550 marked an increase of 23 per cent year-on-year.

Looking at Wellington City, Mr Lloyd said the district’s average asking price reached a new high for the sixth month in a row at $1,072,800 last month. “This made it the most expensive district in the region, followed by Porirua ($1,068,600) and South Wairarapa ($981,500).”

Most expensive districts in the Wellington region - February 2022

While supply skyrocketed in Wellington last month, demand in the region was down by 8 per cent in February when compared with the same month in 2021.

The capital’s most popular property in February was a five-bedroom house on Cheviot Road, Eastbourne. “It had an asking price of $10,000,000 and was watchlisted 284 times in it's first two days onsite.”

Auckland prices increase by 21 per cent year-on-year

The average asking price in the Auckland region was $1,241,500 in February, climbing 21 per cent year-on-year. “This marked a slight dip when compared to the month prior, when the average asking price in the region was $1,250,500.

“Looking at Auckland City, the average asking price was $1,340,050, making it the third most expensive district in the region.”

The most expensive districts in Auckland in February were Waiheke Island ($1,768,100) and North Shore City ($1,432,200).

Most expensive districts in the Auckland region - February 2022

Supply in the Auckland region was up 14 per cent year-on-year in February, while demand was down 19 per cent.

Last month’s most popular Auckland property was a four-bedroom, three-bathroom house on Huia Road in Titirangi with an asking price of $2,050,000. “It was watchlisted 223 times in its first two days onsite.”

Record average asking prices for all house sizes

Mr Lloyd said nationwide, houses of all sizes saw their highest ever average asking price last month. “A new record was seen for medium sized (3-4 bedroom) property prices, with the average asking price increasing by 24 per cent year-on-year to reach $979,400 last month. The average asking price for small properties (1-2 bedrooms) also reached an all-time high of $715,650 in February, increasing by 21 per cent year-on-year.”

Mr Lloyd said the national average asking price for apartments and units reached a record high in February, at $761,450 and $647,750 respectively. “The average asking price for urban properties in Christchurch saw the largest jumps, up by 30 per cent year-on-year.”

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