Trade Me Property Price Index shows the national average asking price jumped by a quarter year-on-year, to reach a new high of $956,150 in December - the biggest on record.
After entering the $900,000 bracket for the first time in November, the national average asking price continued to break records and show unprecedented growth last month, says Gavin Lloyd, Trade Me property sales director. “December marked the third month in a row when property prices increased by more than 20% year-on-year. ”
Average asking prices reached an all-time high in every region last month, except for Southland.
Nationwide, the number of houses for sale increased by 6% year-on-year last month, marking the first time supply has increased since April 2021. Demand, on the other hand, dropped by 4% in December when compared with the same month year-on-year.
Lloyd says if supply increases continue, prices might slow. “Looking at the December data it is hard to imagine prices cooling off, especially following the relentless increases throughout the past couple of years.” Trade Me will be watching listing numbers closely to see whether the gap between supply and demand narrows and some pressure is taken off the market as a result.
Biggest growth in Manawatū/Whanganui and Hawkes Bay
The largest price increases were in the middle of the North Island, with the average asking price in the Hawke's Bay region up 32% year-on-year and the average asking price in the Manawatū/Whanganui region up 30%.
Both of these regions has a massive surge in supply in December when compared with the same month in 2020, with listings up 52% in Manawatū/Whanganui and 5% in Hawkes Bay. These were the two biggest year-on-year increases around the country In December.
Lloyd puts the flurry of activity in these regions down to the lockdowns slowing the market in the middle of the year. “When things started looking stable we saw big numbers of listings come on site at the end of the year.”
Porirua property prices hit $1m
In the Wellington region, the average asking price for a property reached a new high of $966,300 in December, increasing by 27% year-on-year. Wellington City district, spent its third month in the $1m bracket, with an average asking price of $1,059,850.
Porirua had a standout month, with the average asking price for the district reaching $1m for the first time, at $1,015,250. This marked a 27% year-on-year increase and made it the third most expensive district in the Wellington region.
District Average asking price -
1 Wellington City $1,059,850*
2 South Wairarapa $1,022,100*
3 Porirua $1,015,250*
In Wellington, listings were up 42% year-on-year while demand was down 9%. “This marked the second month in a row the region had a significant supply increase,” says Lloyd. “If this trend continues in the coming months prices could slow in the Wellington region.”
The capital’s most popular property last month was a five-bedroom house on Queens Grove in Lower Hutt. The property had an asking price of $3,250,000 and was added to 194 Trade Me members’ watchlists in its first two days onsite.
Auckland prices increase by 22% in 12 months
The average asking price in the Auckland region reached a record $1,253,600 in December. The average asking price in Auckland city was an all-time high of $1,378,250, making it the third most expensive district in the region.
The most expensive districts in Auckland in December were Waiheke Island ($1,700,650) and North Shore City ($1,475,800).
Supply in the Auckland region was up 10% year-on-year in December, while demand was down 10%.
Last month’s most popular Auckland property was a four-bedroom, four-bathroom house on Arapito Road, Titirangi, with an asking price of $5,000,000. “It was watch listed 238 times in its first two days onsite.”
Record average asking prices for all house sizes
Nationwide, houses of all sizes had the highest ever average asking price last month. “The biggest year-on-year increase was seen for small houses, with the average asking price for 1-2 bedroom properties increasing by 29% year-on-year.”
The national average asking price for urban properties (townhouses, apartments and units) reached a record high in December, at $771,950. The average asking price for a townhouse saw the biggest increase of all urban property types, up 28% on the same month last year and reaching an all-time high of $902,200.