NZ property market heats up over June

Only two regions have seen property prices decline over the winter months

NZ property market heats up over June

New Zealand property market prices have risen in June, with 13 of the country’s 15 regions experiencing year-on-year growth, according to the latest Property Price Index from Trade Me.

Nigel Jeffries, head of Trade Me Property, said that both low interest rates and increased competition drove price increases across the regions as buyers became more motivated to buy property.

According to the report, the national average asking price rose 1% on last year to $648,650 in June. Property prices in Gisborne and Southland jumped to 16% compared to last year, while those in Manawatu/Whanganui rose up by 15%.

Read more: Where are New Zealand’s property hotspots?

The only regions that dropped prices this year were Taranaki and Auckland, with the former dropping to 3.4% and the latter to 2.4%.

Auckland’s property prices have dropped to their lowest since September 2016. Jeffries said that the region’s property market continues to decline despite its phenomenal growth over the last few years.

“In May we saw the largest year-on-year percentage decrease since 2014 at 1.9 per cent. In June it fell even further dropping 2.4 per cent, causing prices to tumble another $13,700 on May,” he commented.

Trade Me has predicted that Auckland will continue to experience drops in the coming months before it rallies in the spring.

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