The average asking price for a house in New Zealand has reached an all-time high, with Whanganui experiencing an incredible rise, according to Trade Me Property data.
While Auckland boasted a 16.1 per cent rise over the past year, the Manawatu/Whanganui region claimed a colossal 29.5 per cent. Whanganui itself now has a record-breaking average asking price of over $500,000, up 160 per cent in the past five years.
Despite Alert Level 4 restrictions, average prices reached $846,900 across the country in August.
This marks the largest annual increase on record, with average asking prices in August 2020 sitting at $702,950, or $143,950 less.
When compared to Trade Me Jobs data, Trade Me Property sales director Gavin Lloyd said the increase puts house prices at 2.2 times the national average salary of $64,939.
“The largest jumps were all seen in lower North Island regions of Manawatū/Whanganui (up 30 per cent to $589,350), Wellington (up 26 per cent to $867,050), and Hawke’s Bay (up 23 per cent to $737,050),” he said.
Meanwhile, the average asking price for a property in the Auckland region reached a record $1.104 million in August 2021.
While house prices continue to rise, supply continues to drop because of Covid-19 restrictions. August 2021 saw a 31 per cent drop in the number of properties listed on Trade Me for sale when compared to August 2020.
Demand for property also dropped by 24 per cent in the same timeframe.
“As expected, the Covid-19 Alert Level restrictions had a significant impact on market supply and demand in August which comes as no surprise considering you cannot buy or sell a house under the Level 4 restrictions,” Lloyd said.
Lloyd said, as with previous lockdowns, he expected listing numbers and demand to make a “quick recovery” once the country shifts down alert levels.
The Trade Me Property Price Index measures trends in the expectations of selling prices for residential property listings added to Trade Me Property over the past three months.
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