House prices continue to soar amid the COVID-19 pandemic – with seven regions reaching record property prices in September, according to the latest data by Trade Me Property.
The latest Trade Me Property Price Index revealed that the national asking price reached a record high of $717,600 last month, a 10% increase compared to the same month last year. What's more, seven of 15 regions reached record property prices as a significant number of buyers continue to enter the market.
“The average asking price in Wellington, Auckland, Taranaki, Marlborough, Manawatu/Whanganui, Northland, and the Bay of Plenty all hit record highs in September as a flurry of buyers hit the market,” said Trade Me Property spokesperson Logan Mudge.
“With thousands of Kiwis coming home to escape the global pandemic needing housing, this is putting pressure on the market and making it seriously competitive. Record low-interest rates are also playing their part, making borrowing a lot more enticing. When you couple this with limited stock on the market, prices start to rise.”
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Trade Me property revealed that nationwide demand increased by 20% compared to the same period last year, with Auckland taking the spotlight as it sets a new record. Meanwhile, the supply remained stagnant.
“With the exception of Gisborne, every region across New Zealand saw an annual increase in demand with most experiencing double-digit growth in September,” Mudge said. “The biggest jumps in demand were seen in Wellington and Auckland, with both regions seeing listing views climb by 24% when compared with this time last year. Waikato and Marlborough were not far behind, seeing a 23% year-on-year.”
“For the first time since early 2017, the average asking price in the Auckland region experienced double-digit annual percentage growth to reach a new record at $972,650. This marks a 10% increase when compared with this time last year when prices were at $882,850 – that's a $90,000 increase.”
“During 2018 and 2019, we saw the Auckland market cool off as prices remained flat or dipped slightly year-on-year. However, since the lockdown lifted, the market appears to be back in action with prices climbing steadily. It's a very good time to sell your property if you are living in Auckland with demand and prices remaining high.”