A decade of property price growth
Thursday 23 January 2020
Recent years have seen some spectacular house price growth around New Zealand but just how much have asking prices gone up in different markets over the last 10 years?
By The Landlord
New data from realestate.co.nz shows that the majority of average asking prices around the country have increased over the last decade.
The biggest increase in asking prices was seen in the Bay of Plenty, with Kawerau having their asking price increase by a whopping 112%.
This was followed by Auckland’s Rodney district and Waitakere City where asking prices increased by 87% and 86% respectively.
However, in Whakatane, Waitomo and Greymouth, prices decreased over the decade by 33%, 20% and 11% respectively*.
So here's realestate.co.nz's breakdown of what’s happened to average asking prices in districts across New Zealand over the last decade...
Price battle in the Supercity
In Auckland, it was the fringe districts who saw the biggest price increases between January 2010 and December 2019.
In the Rodney district, the average asking price increased by 87% from $905,770 in 2010 to $1,693,141 by the end of 2019. Waitakere City saw a similar trend across the last decade with prices increasing by 86% from $470,845 to $873,749 in 10-years.
Over the 10-years, the average asking price in Papakura increased by 69%, Waiheke Island increased by 59% and Auckland City increased by 56%. The average asking price increased by 48% in the popular North Shore and by 45% in Manukau. Franklin increased its average asking price by 34% over the 10-years – the smallest increase of the Auckland districts.
House prices more than double in booming Kawerau
Milling-town Kawerau saw the biggest increase of all our districts nationwide over the decade (up 112%). In January 2010, the average asking price for a house in Kawerau was $153,579. By December 2019, the average asking price in the district had more than doubled to $325,542.
Kawerau has long been known as an industrial town and has in recent years been identified as a "surge region" by the government. As part of the Provincial Growth Fund, the government has announced that Kawerau will receive more than $5,000,000 in funding for various local projects.
These recent boosts to industry, training and infrastructure via the provincial growth fund as well as a general upward trend in employment rates since 2014 could suggest that Kawerau is on the up.
Average asking prices in most of the Bay of Plenty have increased over the decade, albeit not to the same extent as Kawerau. Real-time data from realestate.co.nz shows that prices have increased by 56% in the Western Bay of Plenty, 44% in Tauranga, 40% in Opotiki and 26% in Rotorua over the last 10 years.
Prices increase in Central Otago and Queenstown but are slower to rise in Wanaka
Tourism hotspots in New Zealand’s most inland region, the Central Otago/Lakes District, saw their average asking prices increase over the last decade. In the 10-years from January 2010 to December 2019, prices rose by 67% in Central Otago and 47% in Queenstown.
Prices in Wanaka however appear to be slower to rise with the average asking price in the area only increasing by 23% over the 10-year period.
Porirua prices increase more than other areas in Wellington
In New Zealand’s capital, it was Porirua City that led the charge with a 62% increase in average asking prices. Rising from $435,108 in January 2010 to $706,601 in December 2019 – Porirua City saw its average asking price increase more than any other district in Wellington.
The Kapiti Coast and Upper Hutt followed close behind, both with average asking price increases of 55% over 10-years. In Lower Hutt, the average asking price increased by 52% while in Wellington City prices only increased by 38% over the 10-years. This could potentially be due to prices in the city already having been much higher at the beginning of the decade than in other areas in Wellington.
Waitomo loses its glow
Homeowners in the Waitomo district who bought in January 2010 may be disappointed at the district’s 20% decrease in average asking price*. Data from realestate.co.nz shows that in January 2010 the average asking price in Waitomo was $381,098* and in December 2019 the average asking price in the district was just $304,484.
In Hamilton, house prices have increased by 63%; rising from an average asking price of $408,739 in January 2010 to $664,696 in December 2019. In Matamata-Piako and Waipa the average asking house price has increased by 47% and 45% respectively.
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