Latest data follows 11 consecutive months of double-digit annual price growth
Despite the New Zealand government’s efforts to cool down the property market, property prices across the country still saw the largest year-on-year jump on record in July 2021, following 11 consecutive months of double-digit annual price growth, according to the latest Trade Me Property Price Index.
The index revealed that the national average asking price reached an all-time high of $834,000 last month, a 19% increase year on year. It also reported record average asking prices in Auckland, Bay of Plenty, Canterbury, Hawke’s Bay, Manawatu/Whanganui, Southland, and Waikato.
However, nationwide demand was down 16% year-on-year in July 2021, the third month in a row that Trade Me saw a drop in demand compared to the same month last year. July 2021 also saw a 26% decrease in supply compared to the same month last year, reflecting that the market remains under pressure.
“Looking ahead, we’re seeing no signs that prices will slow, especially with the Reserve Bank’s announcement that they will leave interest rates where they are for the time being,” said Trade Me Property sales director Gavin Lloyd.
Read more: Report reveals New Zealand homes doubling in value
The average asking price in the Wellington region jumped 8% on July last year to $60,400 last month, with the average asking price in Wellington city at $937,650, making it the most expensive district in the region. It was followed by Porirua at $896,450 and Kapiti Coast at $875,500.
Lloyd said a lack of properties for sale was behind price increases in Wellington: “Supply has long been a problem in Wellington, and, in July, the number of houses for sale was down 11% on the same time last year.”
“Interestingly, demand in the region was down by 23% 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% decrease in July when compared with the month prior.”
Meanwhile, Auckland’s average asking price hit the $1.1 million mark for the first time in July, sitting at $1,101,250. The most expensive districts in the region were Waiheke ($1,781,200) and North Shore City ($1,294,850).
Lloyd revealed that supply in Auckland was down 16% year-on-year in July, and demand was down by 20% compared to 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,” he continued.
Nationwide, small houses (one to two bedrooms), medium houses (three to four bedrooms), and large houses (five and more bedrooms) reached their highest ever average asking price in July 2021. Small houses saw the largest year-on-year percentage increase of 27%, while urban properties hit their highest ever asking price nationwide – reaching $697,700.
