Average New Zealand house price hits new record

by Roxanne Libatique29 Apr 2021

The national average asking price for homes in New Zealand hit a new record-high in March 2021 – exceeding $800,000 for the first time, according to the latest Trade Me Property Index.

Now at $805,100, the national average asking price last month saw a 16% annual increase – with each region seeing a solid year-on-year increase except for Nelson/Tasman, West Coast, Otago, and Northland.

“March marked the seventh record-breaking month in a row for New Zealand’s average asking price, and house prices are showing no sign of slowing any time soon,” said Trade Me Property sales director Gavin Lloyd.

“While this will be music to the ears of homeowners, no doubt it’s hard to hear for prospective buyers who have been hit with relentless price increases for months.”

Demand nationwide also increased by 26% year-on-year, while supply dropped by 9%, according to the index.

“As we have seen consistently over the past few months, demand outweighed supply in March, putting pressure on the market and resulting in ongoing price increases,” Lloyd said.

Auckland remained at the top last month, with the average asking price hitting $1,047,450 – a 10% increase on the same month last year. Demand in the region also increased by 21% last month compared to the previous year. Meanwhile, supply increased by 7%.

“If we take a look at Auckland City, the average asking price was just shy of $1.2 million at $1,184,950, up 6% on the same month last year,” Lloyd said.

The Wellington region also dominated the market last month, with the average asking price increasing by 20% compared to the same month last year, to $829,500.

“This is the biggest year-on-year increase on record for the region and marks the first time Wellington’s average asking price has cracked $800,000,” Lloyd said.

“Every district apart from Carterton saw house prices hit a new high in March, with Wellington City coming in as the most expensive district in the region, with a record average asking price of $912,400.”

Meanwhile, the national average asking price for all urban properties reached an all-time high in March 2021, including small (one to two bedrooms), medium (three to four bedrooms), and large (at least five bedrooms) homes, according to Trade Me.

“The biggest increase was seen for large houses, with the average asking price seeing a 17% year-on-year increase,” Lloyd said.

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