The national average asking price for property in New Zealand hit an all-time high of $784,450 in February 2021 – increasing by $106,550 compared with the same month last year, according to the latest Trade Me Property Price Index.
According to the report, February marked the sixth month in a row New Zealand’s average asking price hit an all-time high as the property market continues to thrive post-COVID-19 pandemic.
Every region except Auckland and the West Coast hit new record average asking prices, with the largest percentage increases found in Gisborne (31%) and Manawatū-Whanganui (22%). Asking prices in Wellington and Marlborough also increased by a solid 17% year-on-year.
Northland had a standout month, breaking into the $700,000 bracket for the first time. Meanwhile, Auckland’s average asking price remained steady at $1,014,800.
“February was another month of immense growth, with prices showing no signs of slowing down,” said Trade Me Property sales director Gavin Lloyd. “While homeowners will be pleased to hear property prices have climbed more than $100,000 in just one year, that house is now even further out of reach for first home buyers.”
However, the report revealed that demand dropped by 2% year-on-year in February 2021 nationally, while supply was down 15%.
“Despite both supply and demand showing a drop off when compared with the same month last year, demand continued to outstrip supply in February, pushing prices up,” Lloyd said.
Lloyd expects the government’s recent housing package announcement to lower prices.
“While it’s not totally clear yet what impact the government’s housing package will have, we may see some increase in supply as investors rethink their property buying decisions with the bright-line test being extended and an increase in tax costs,” he said.
“In saying that, we would have to see a pretty remarkable increase in supply to see any relief in the short term. We expect to see the impact of this new legislation later in the year.”