No end to house price growth - Trade Me

House prices remain firmly on the rise with solid year-on-year growth nationwide, according to the latest Trade Me Property data.

Thursday, May 11th 2017, 2:00PM

by Miriam Bell

Trade Me Property’s price index shows that the national average asking price was up by 10.2% year-on-year to $644,600.

Once Auckland’s market was excluded from the equation, the national average still rose strongly. It was up 9.6% year-on-year to a new record high of $484,700.

Head of Trade Me Property Nigel Jeffries said the average asking price outside Auckland has not escaped price inflation.

“In the past year alone, the average asking price for a medium-sized home (three to four bedrooms) outside Auckland has risen by 10%,” he said.

“That’s no small amount by anyone’s measure, particularly for Kiwis around the country still holding out hope of getting a foot on the property ladder.”

Northland, Bay of Plenty and Waikato saw particularly strong growth in average asking prices.

Jefferies said the mighty Waikato is the fastest-rising region and shows little sign of easing.

“In the past year alone, the average asking price has risen by 20% or $84,800, to a new record high of $519,650.”

Northland grew by 18.4% over the past year to hit $512,950 in April – although this asking price is down on four months ago.

The Bay of Plenty also eased in April to $588,350, down from $590,650 in March.

But Jefferies said this was unlikely to be a trend reversal as the region has seen a 13% rise in the average asking price over the past year and are now up more than $65,000.

Auckland’s market also continues to power on – particularly in the apartment sector, according to the data.

The region’s average asking price was up 9.7% year-on-year to $925,300 in April, but it is Auckland apartment asking prices that are skyrocketing.

Jefferies said that in February they noted that average apartment asking prices had doubled in just five years.

That rate of growth hasn’t slowed, with the average asking price for Auckland apartments increasing by $26,300 in just one month, he said.

“Those keen on entering the Auckland apartment market can expect to pay $657,750, that’s $68,000 more than in January.

“It’s an expensive entry into the city property market, though still cheaper than medium or small houses in the area.”

Canterbury was the only region in the country to show a year-on-year decline (of 0.4%) in average asking prices.

Jefferies said that house prices in Canterbury continue to be rocked by the state of the Christchurch market.

“It’s almost a regular fixture to see the region in such stark contrast to the rest of the nation.”

 

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