Market settles into cruise mode

The Trade Me Property Price Index shows that New Zealand’s average asking price was up, again, to a new record high of $600,850 in September.

But this was an increase of just 0.6% on August’s average asking price of $597,250.

Head of Trade Me Property Nigel Jeffries said the New Zealand property market was “levelling out” and cruising after years of climbing and turbulence.

“With month-on- month increases of 1% or lower over the past five months, it looks to be taking a bit of a breather.

“And if we cast our eyes back over a longer period, we’ve seen the average asking price increase by 6% over the past year.”

While this increase was still pretty impressive, it represented relative calmness after the 10% and 16% annual increases in previous years, he said.

It was the Auckland market that displayed the most noticeable slowdown – despite hitting a new record average asking price of $871,800 in September.

This was an increase of 1.5% on August’s average asking price of $858,900.

Jeffries said that Auckland’s average asking price was up 12% year-on-year, which was strong growth but a huge slowdown on the 20% jumps seen over recent years.

“It’s incredible to think that another record average asking price equates to a slowdown, but there’s a definite easing after the frenzied growth of the last couple of years.”

The data shows that even Auckland’s apartment market price growth has cooled from highs of more than 40% year-on-year to a modest 2.8% increase in the year to September.

However, markets around the country continue to record strong growth.

Only two regions showed year-on-year falls in average asking prices in September. They were Hawke’s Bay and the West Coast which were down by 7.9% and 6.5% respectively.

The remainder of the country saw year-on-year increases in average asking prices.

Nine regions recorded double-digit percentage jumps, while five regions reached record price highs: Auckland, Waikato, Bay of Plenty, Wellington and Nelson.

Jeffries said the star performers of the market were, once again, Waikato and the Bay of Plenty.

“Waikato’s growth has been incredible, turning in a 20% jump in average asking price from last year to a record $467,400.

“The Bay of Plenty recorded its twelfth successive month of record highs in September, hitting $551,100 and up $150,000 over the past three years.”

He added that Nelson broke the “half a million” price barrier for the first time in September.

The region’s average asking price has now reached $505,800, which was a 10.5% year-on-year increase.