Third Consecutive Month Of Property Price Increases

November, while the number of properties for sale reached an all-time high, according to the latest Trade Me Property Price Index.

Trade Me Property’s Customer Director Gavin Lloyd said in November the average asking price for a property in New Zealand was $854,900.

“Month-on-month this marks an increase of 0.7 per cent which is a more modest increase than October which was up more than three percent on September.”

November’s largest increases were seen on the West Coast (+4.8%), Nelson/Tasman (+2.6%), Northland and Marlborough (+2.2% respectively) and Auckland (+1.4%) where average asking prices returned to north of the one million dollar mark in October.

The biggest falls across the month were in Gisborne (-3.3%), Hawkes Bay (-1.1%) and Otago (-0.7%).

“If we take a year on year view of prices it’s very much a tale of two halves with five of the six South Island regions Trade Me Property monitors showing positive price movement including growth of more than ten per cent on the West Coast where the average asking price now sits at $517,700. Nelson/Tasman is the exception which is down 1.9 per cent to $833,950.

“Looking at the North Island it’s a very different picture with prices down across the board when compared to the same period last year. Gisborne (-7.0%), Hawkes Bay (-3.6%) and Wellington (-2.3%) have seen the largest decreases.”

Supply, supply and more supply

Mr Lloyd said a factor behind the somewhat subdued month-on-month rises in November, and in some regions declines, was due to skyrocketing supply which currently sits at an all time high.

“Nationwide, the number of properties for sale was up 18 per cent year-on-year in November with each of the 15 regions Trade Me Property monitors showing listings growth both

month-on-month and compared to the same time last year.

“There’s a few regions which are standouts from a supply perspective including Wellington and Gisborne which are both up 32 per cent on last November, Hawkes Bay (+31%) and Otago (+27%),” said Mr Lloyd.

About the Trade Me Property Price Index:

The Trade Me Property Price Index measures trends in the expectations of selling prices for residential property listings added to Trade Me Property by real estate agents and private sellers over the past three months.

It provides buyers, sellers and realtors with insights into ‘for sale’ price trends by property type and property size.

The Index is produced from data on properties listed on Trade Me Property in the three months leading up to the last day of each period. Each period’s value is a truncated mean of the complete three months’ worth of listings. This is to better reflect trends in property prices rather than month-to-month fluctuations in housing stock.

The Index uses an “80 per cent truncated mean” of the expected sale price to calculate the average asking price. This excludes the upper and lower 10 per cent of listings by price, and averages the expected sale prices of the remaining properties.

It provides an insight into ‘for sale’ price trends by type and size of property. Other reports aggregate property price data across these various properties.

Some of the numbers in this release have been rounded

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