NZ regions end 2018 on a high note

Six regions reached record asking prices in December

NZ regions end 2018 on a high note

Six regions across the country hit record asking prices by the end of 2018, according to Trade Me’s latest Property Price Index.

According to head of Trade Me Property Nigel Jeffries, this is contrary to the usual expectation that market prices would see a dip in activity towards the end of the year. He said property demand was “very strong” as 2018 wrapped up, marking the end of an equally strong year.

“December is typically a slow month for the property market as buyers and sellers take some time off over the break but six regions bucked the seasonal trend to end the year with record average asking prices,” Jeffries said.

“The New Zealand property market was very strong all year, and December was no exception.”

Jeffries said that Hawke’s Bay’s performance was particularly impressive, as it reached an average asking price of $566,950 - an 11% year on year increase.

“Property prices in Hawke’s Bay have been increasing consistently since late 2016 as demand continues to grow in the region,” he stated. “In December the average number of views on Hawke’s Bay properties was up a solid 16 per cent on the year prior, with that level of demand we don’t see that growth slowing any time soon.”

Wellington meanwhile saw a 1.6% drop in its average asking price to $606,900, with Jeffries commenting that demand was traditionally low in the capital in December, as many residents head away on their holiday break. Auckland prices have remained “steady,” recording a small year on year increase of 0.1%.

In terms of property type, Jeffries says smaller houses have become increasingly popular as more kiwis look to downsize.

“With rising house prices it’s not surprising that we’re seeing smaller houses become the pick of the bunch for some New Zealanders,” he explained. “Small houses are a good step onto the property ladder and they’re popular with investors too. They are more affordable and desirable to young professionals who don’t need as much space as your typical Kiwi family.”

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