House prices in big cities hit record highs

What does this mean for potential home buyers?

House prices in big cities hit record highs

Property prices in New Zealand’s largest cities have seen new record highs.

According to the latest Trade Me Property Price Index, the average asking price in Wellington has leaped 12% year-on-year to $593,250 in September. Average asking prices in Auckland bounced back following winter slump, climbing 2.63% to $917,150.

Across the Wellington region, Masterton saw the biggest annual increase with a 20% leap in average asking price to $408,850. Asking prices in the Upper Hutt rose 15.5% to $538,500 and up 10.4% to $559,300 in the Lower Hutt. The average asking price in Wellington City was up 8.5% on the year prior to $700,400.

In Auckland, Auckland City saw the largest increase with the average asking price sitting at $1,022,000 (up 7%). Waitakere also saw record high asking prices to $826,500 (up 1%).

Across New Zealand, meanwhile, the report suggested a solid growth for apartment, townhouses and units with the average asking price jumping 4.9% year-on-year to $548,000.

Trade Me Property head Nigel Jeffries said more Kiwis are continuously downsizing “their home and first-home buyers move into these urban properties, attracted by smaller mortgage repayments and less maintenance costs.”

“Apartments are still the hot favourite with a 7.2% increase in average asking price nationwide,” he added.

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