Prices outside New Zealand's three main centres have been recorded at an all-time high
Property prices outside New Zealand’s biggest cities have continued their upwards climb throughout April and are up by 6.4%, according to the latest Trade Me Property Price Index.
Prices outside Auckland, Wellington and Christchurch are currently recorded at a record high of $505,650.
Trade Me property head Nigel Jeffries says that this is no fluke, and that there has been a significant shift for the regions over the last several months.
“Asking prices are shooting up while the cities are pausing for breath,” says Jeffries. “The majority of the jump is being driven by halo regions around Auckland, with record average asking prices in the Bay of Plenty (up 4.6% to $615,100) and Waikato (up 5.9% to $550,400). Taranaki has also pushed prices up and jumped 9.6% to a record $422,100.”
Jeffries says regional prices are by no means catching up to Auckland, but that attractive work/life balance options, an easy commute into Auckland and good investment opportunities have made the regions a desirable place to settle.
There is also good news for home buyers, with the number of properties for sale increasing by 9% since last April. Demand has cooled off since early this year, and the average number of views has risen by just 0.8%.
“Buyers have had stiff competition out there in recent months, but these numbers indicate it will be a little easier now,” says Jeffries. “Apartment prices outside Auckland have experienced solid growth over the last 12 months…apartments are a good option for first home buyers as they are typically warmer, drier and require less maintenance, so they offer a more affordable option in the current property climate.”
Prices within Auckland have also stabilised after two consecutive months of stalling, increasing by 1.9% since last March. The growth was led primarily by medium 3-4 bedroom houses and reached $950,000, up 2.5% since last year.
In Wellington, prices fell by 0.1% on March, though large and small houses remained popular and saw double digit growth.
