Property market ends 2017 with record average asking
prices
Thirteen of New
Zealand’s fifteen regions hit record average asking prices
in December with property listings in hot demand, according
to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said the Wellington region was leading the trend with $64,600 added to the average asking price since December 2016. “The Wellington property market gained momentum in 2017 and in December the average asking price reached a new record at $568,100, up 12.8 per cent on last year. Otago was another record breaker at $525,300, up a solid 13.3 per cent on December 2016.”
Mr Jeffries said there was a continuation of fierce demand for property across the country with 18.5 per cent more views on listings than in December 2016. “Popular holiday hot spots Hawke’s Bay, Nelson and Northland all had over 30 per cent more views on each property listing compared to December 2016 as Kiwis checked out the local listings ahead of their summer break.”
The national average asking price rose 3.4 per cent on December 2016 and was up 0.2 per cent on November to $640,450.
Regions running
hot
“On the whole, the New Zealand property
market ended 2017 with a bang,” Mr Jeffries said.
“Gisborne and the West Coast were the only regions that
didn’t reach record asking prices in
December.”
Looking at the biggest risers, the average
asking price in Southland grew by 13.5 per cent to $292,350,
Otago rose 13.3 per cent to $525,300, Hawke’s Bay jumped
12.8 per cent to $510,550 and Wanganui was up 12.2 per cent
to $327,550.
Auckland asking price reaches
new record
“Homeowners in the Super City will
have plenty of reasons to smile this year after the average
asking price reached a new high in December, up 3.6 per cent
on last year to $941,850 - an annual increase of $33,000,”
Mr Jeffries said.
“We’re continuing to see strong
buyer demand for property in Auckland with average views per
listing up 10 per cent on December 2016. Townhouses in the
city are particularly popular at the moment and reached a
new record average asking price of $898,650 in December and
an annual increase of 6.2 per cent. House prices outside
Auckland reach $500,000
“The last year has
been a lot slower than the unbelievable property market we
saw in 2015 and 2016, but the end of summer and autumn could
be an interesting time for the Auckland property market if
this trend continues.”
Mr Jeffries said the
average asking price outside Auckland exceeded
half-a-million dollars for the first time in December to
reach a new high of $502,800, up 5.9 per cent on 2016.
“This jump has been largely driven by house prices in
Otago, Hawke’s Bay, Southland and Wellington where the
average asking price jumped between 12 per cent and 14 per
cent in the last 12 months.”
Large and medium
houses soar
While small (1-2 bedrooms) and
medium houses (3-4 bedrooms) continue to be the most popular
house type across the country, large (5+ bedrooms) and
medium houses reached a record high in December climbing to
$1,156,400 and $641,850 respectively.
“Auckland has
seen a huge increase in demand for large houses recently
which has pushed the average asking price to an eye-watering
new record at $1,451,500,” Mr Jeffries said.
Predictions for
2018
“Away from the increased seller
expectations on the price front, there is some good news
looming for first home buyers with the easing of Loan to
Value restrictions, plans to ban foreign buyers and the
Healthy Homes Guarantee Act,” Mr Jeffries said. “The
loosening of credit rules should allow more first time
buyers get a foot on the property ladder which will result
in a small increase in demand.
“We’ll also see less
overseas buyers in the market in 2018 following the
Government’s plan to ban international investors. We
expect this to have an impact on big ticket properties
around the country that are often purchased by foreign
buyers, but this won’t have a significant impact on the
national asking price.
“In preparation for the Healthy
Homes Guarantee Act, some property investors may choose to
sell up rather than face the additional costs required to
comply, resulting in a potential increase in housing stock
for owner occupiers.
“Demand for housing will remain
solid this year and we expect to see the national average
asking price grow between 2 per cent and 4 per cent,” he
said.
Region Dec 2017 vs Dec 2016 Average asking
price
Northland +1.8% or
$9,350 $531,100
Auckland +3.6% or
$33,000 $941,850
Waikato +6.2% or $31,700 $543,450
Bay
of Plenty +7.6% or $42,000 $607,400
Gisborne -13% or
-$45,950 $308,200
Hawke’s Bay +12.8% or
$58,100 $510,550
Taranaki +5.8% or
$21,600 $396,900
Wanganui +12.2% or
$35,700 $327,550
Wellington +12.8% or
$64,600 $568,100
Nelson +5.4% or
$29,550 $578,000
Marlborough +6.8% or
$29,950 $469,950
West Coast -3.1% or -
$8,450 $262,550
Canterbury +2.4% or
$11,100 $478,700
Otago +13.3% or
$61,650 $525,300
Southland +13.5% or
$34,700 $292,350
ENDS