One expert’s warned Wellington’s skyrocketing housing market is ‘unsustainable’, as house prices in the capital jumped nearly 25 per cent in one year.
By Jessica Morris
That’s according to the latest Trade Me Property Price Index, which showed asking prices were up 24 per cent on June last year.
“The largest increase is certainly out of that Wellington City market. Land is really tight there, there are not many options of development,” Trade Me Property sales director Gavin Lloyd said.
“The fact is, the Wellington property market is now running hotter than any other market we’ve seen before, including Auckland.”
It’s the fourth consecutive month where Trade Me data’s shown property price growth of 20 per cent or more in Wellington, with the average asking price now at a record-breaking $864,000.
Lloyd put it down to a lack of housing, along with unprecedented demand.
“Supply is a big problem in Wellington City. What we're seeing is people looking at different options within the region, so moving up the Kāpiti Coast, South Wairarapa, Upper Hutt.
“So we're seeing good demand in other parts of that Wellington market which is obviously having an impact of that average asking price as well.”
The national average asking price was also up, according to Trade Me data, climbing 18 per cent to an all-time high of $826,200.
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.