Supply remains tight nationwide

Monday 2 December 2019

Many regional markets hit record high asking prices in November but that’s not deterring property-seeking Aucklanders, Realestate.co.nz’s latest data shows.

By The Landlord

The real estate website’s November data has regional New Zealand heating up for summer, with eight regions climbing to the highest asking prices since records began in 2007.

Those regions included Northland (up 2.6% from September to $648,913), Waikato (up 4.3% to $647,879), Manawatu-Wanganui (up 3.3% to $446,461), and the Bay of Plenty (up 2.1% to $715,326) in the North Island.

And Nelson & Bays (up 0.9% to $701,072), Canterbury (up 3.2% to $519,865), and Otago (up 6.1% to $483,706) in the South Island.

Realestate.co.nz spokesperson Vanessa Taylor says this reflects the steady climb in asking prices throughout 2019.

“Asking price highs have grown in many parts of New Zealand and for many of these regions it is not their first high for 2019.”

However, the strong price growth in many regions is not putting off Auckland buyers.

Realestate.co.nz’s data shows that many of those looking at property in regional New Zealand are based in Auckland.

Northland, Bay of Plenty and the Central North Island appear to be the favourites for Aucklanders, with more Aucklanders searching online for property in those regions than those already living there.

Taylor says that it looks like a number of Aucklanders are still looking for property outside of the city.

“This could suggest Aucklanders are looking for a permanent lifestyle change or are seeking holiday homes in the North Island this summer.”

In Auckland itself, average asking prices in Auckland continue to fluctuate. The region’s average asking price dropped back 2.2% to $915,794, after a lift last month to $936,850.

Following sharp drops in April and May which saw the average asking price dip below $900,000, the region has seen prices hover around the low 900s for most of this year, Taylor says.

“Being New Zealand’s largest market, the Auckland region has the tendency to sway the national results, which is perhaps why we saw the national average asking price drop back 1.0% to $680,592 despite all the regional highs.”

Meanwhile, the total number of properties on the market was down by 19.4% year-on-year in November. 

None of the regions saw an increase in homes available for sale and Taylor says this could be contributing to the asking price highs seen in eight regions during November.

“When there are fewer homes available for sale, there is usually increased competition between home buyers. People are often willing to pay a little bit more to make sure they get what they want.”

In a similar vein, new listings were down by 7.6% across the country as compared to November 2018.

This trend was reflected in the major centres with new listings in Auckland, Wellington and Canterbury dropping by 7.0%, 5.9% and 2.7% respectively.

Taylor says that as the total number homes available for sale and new listings are both down considerably on the same time last year it is squeezing choice for those looking to buy.

“The highs and the current low stock levels suggest that Kiwis are waiting to get through the busy Christmas and New Year period before thinking of selling in 2020.

“It is fair to say that those who are looking to buy over the summer break may need to do a bit of digging and be patient with the small number of homes on the market at the moment.”

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