It is also the fourth consecutive month where prices have gone up 20% or more. Prices in June had the largest annual increase on record, the latest Trade Me Property Price Index shows.
The average asking price in the Wellington region rose 24% on June last year to a record-breaking $864,000.
Trade Me property sales director Gavin Lloyd says the Wellington property market is now running hotter than any other market seen before, including Auckland.
“A lack of properties for sale is driving price increases in the region.
“Supply has long been an issue for the Wellington market and in June the number of houses for sale was down 13% on the same time last year.”
Taking a closer look at the region, Wellington City had the smallest annual growth of all the Wellington districts, climbing 15% to a record-breaking $943,900.
“With the average house price in Wellington City closing in on a million dollars, it’s no wonder people in the capital look further afield in search of cheaper house prices in exchange for a longer commute,” says Lloyd.
South Wairarapa had the biggest price jump in the region with the average asking price up 39% on last June to a new high of $784,550.
Masterton rose 32% to $629,700; Carterton was up 30% to a record-breaking $699,450; Kapiti Coast increased 29% to a new high of $876,650; Porirua climbed 21% to $885,250; Lower Hutt was up 26% to a record-breaking $836,700; and Upper Hutt rose 27% to $821,950.
However, Lloyd says this rate of growth is unsustainable.
“While there are yet to be any signs the Wellington property market is slowing down, this huge price growth simply cannot continue forever.”
Auckland prices pick up pace
Following Wellington’s trend, the average asking price in Auckland saw the biggest price growth ever in June, jumping 16% year-on-year to an all-time high of $1,089,300.
“Just when it appeared as though price growth was easing in the Auckland market, prices have taken off yet again with a record-breaking annual increase of almost $150,000.”
The national average asking price also saw the largest annual increase in June, climbing 18% to an all-time high of $826,200.
Lloyd says every region in the country apart from Gisborne, Northland and Otago reached a record average asking price in June with many experiencing strong double-digit growth.
“Marlborough, up 30% to $622,900; Manawatū/Whanganui, up 26% to $570,700 were the standouts in June.”
Small houses the pick of the bunch
Nationwide, small houses – one to two bedrooms – had the most price growth of any house size in June, following a 23% annual increase to a record-breaking $624,900.
Medium three to four-bedrooms and large houses, five-plus bedrooms also reached a new high after some solid double-digit growth.
Lloyd adds, when it comes to urban properties such as apartments, townhouses and units, townhouses were the hot favourite.
The average asking price for a townhouse rose 22% on June last year to an all-time high at $796,200.