Auckland apartment market cools

According to Trade Me Property’s November data, the average asking price for an Auckland apartment has fallen by 3.8% as compared to this time last year.

Head of Trade Me Property Nigel Jeffries said the Auckland apartment market is stagnating following a strong period of growth over the previous year.

“A year ago the average asking price of an Auckland city apartment blasted past $600,000, having soared up more than $150,000 in nine months.

“Over the past year it’s been quite a different story, with prices shunting sideways to hover around $575,000.”

Jeffries said that, in November, the average asking price was stuck in the mud as the pipeline of new apartment inventory remained very strong.

More than 500 new apartment listings hit the Auckland market in the last month, he said.

Wellington’s apartment market stands in stark contrast.

It saw growth of 13.3% in the average apartment asking price over the last year, which left the city’s asking price at $464,450 in November.

Christchurch’s apartment market also grew steadily: its average asking price was up by 3.9% year-on-year putting it at $416,650 in November.

Meanwhile, November saw strong price growth in almost all markets around the country – including the broader housing market in Auckland.

Trade Me Property’s data shows that the national average asking price rose to $624,850 – which was 1.1% growth on October and 9.8% year-on-year growth.

All but one of the 15 regions stepped up a notch last month, with only the West Coast (down 8.3%) recording a drop in its average asking price.

Average asking prices in 12 regions lifted over 5% in the past year and seven regions saw double-digit inflation.

Gisborne (up 31.8%) saw the biggest increase – but Jefferies said that was partly due to the mix of recent listings in the area.

It was followed by Waikato (up 27.4%), Nelson/Tasman (up 16.6%), Northland (up 16.4%), Bay of Plenty (up 16.0%), Auckland (up 13.4%) and Wellington (up 10.6%).

Five regions – besides Auckland - also now have an average asking price of over $500,000.

They are the Bay of Plenty ($570,650), Nelson/Tasman ($535,550), Waikato ($501,100), Wellington ($508,850), and Northland ($505,600).

Jeffries said this time last year Auckland was the only region that had an average asking price above this level.

Auckland’s average asking price crossed the half-million threshold six years ago, he said.

“And last month Auckland cracked the $900,000 mark in average asking price for the first time, as it continues its inexorable rise towards the million dollar mark.”

The Christchurch market remained subdued.

There was growth of less than 1.0% year-on-year in the average asking price, which left it as $473,900 in November.