Expert says lack of stock may be driven by strong population growth
New Zealand’s property market rounded off the decade with a series of record-breaking statistics, according to new data published by realestate.co.nz.
Head of Sales and Marketing Vanessa Taylor says the market was very much a “sellers’ game” in December 2019, and was the first time that the organisation saw three national records set within one month.
The figures showed an all-time high national average for asking prices – over $700,000 – and record low new listings nationwide, with homes available for sale hitting an “unprecedented” low.
“Low stock, teamed with high asking prices sees us close out the decade as a strong sellers’ market,” Taylor commented.
“This is the first time since our records began in 2007 that we have seen three national records in the same month. There have been years where we have seen a combination of two, but never all three.”
Taylor says the decreasing availability of homes for sale may be due to New Zealand’s population growth, which grew from 4,280,300 in 2008 to 4,882,500 in 2018. As of 7 January 2020, Stats NZ estimates the population to be at 4,952,100.
“With our population growing at a rate of approximately 60,000 people per year over a 10-year span, significant demand for housing is likely to be putting pressure on our property market,” Taylor said.
“Given the limited choice of homes available, people are often reluctant to sell without having somewhere to go – especially if the rental market in their area is cramped. This then has a flow-on effect with homes coming off the market before new ones go up for sale.”
December 2019 also saw the national average asking price exceed $700,000, with the last recorded high being $695,116 in January 2019. Taylor says that despite some market volatility, this shows that average asking prices are continuing to rise nationally – a trend largely down to strong growth in the regions, rather than in the main centres of Auckland, Wellington and Canterbury.
“We are seeing substantial year on year average asking price increases in a number of regions which, generally, tells us that the value of property is continuing to grow,” Taylor noted.
“The only regions where the average asking price has decreased, since the same time last year, are Auckland and the Wairarapa and even then, the decreases are just marginal at 1.4% and 0.3% respectively.”
