Porirua house prices surge as capital bucks national trend

Wellington house prices continue to climb as other parts of the country cool, pushing the cost of the average capital home up by $48,550 in the past year.

The average asking price of a home in the Wellington region is now $528,200 – 10 per cent higher than it was a year ago. The Porirua average is up 23 per cent to $549,300.

The figures, from the Trade Me property price index, also show a 5 per cent increase in demand, accompanied by an 8 per cent decrease in properties hitting the region’s market during the busy spring period.

The combination is putting home ownership further out of the reach of many first-home buyers, and contrasts with a slowdown in price increases nationally, led by the stalling Auckland market.

Trade Me property head Nigel Jeffries believed the current Wellington increases were not sustainable, and would probably drop to about 5 per cent over the next year.

Wellington first-home buyer Andy Stantiall said he and his partner had spent a frustrating 18 months searching for a home before finally buying a semidetached in Crofton Downs two months ago.

It had been frustrating to watch prices move further and further beyond what he could afford, he said.

‘‘There hasn’t been much on the market in our price range,’’ he said.

‘‘We were wanting to keep under $500,000.’’

Jeffries said the continuing rise in Wellington prices was partly because homes were still affordable in comparison with the average wage, which was not the case in Auckland.

The average wage in Welling- ton was $69,876 compared with Auckland’s $72,338, while average house prices were $365,000 higher in Auckland.

‘‘The Wellington property market has stood strong over the last five years, climbing over 31 per cent and earning homeowners a hefty $127,000 since September 2012,’’ he said.

Nationwide, the average asking price for a home was up 1.1 per cent to $607,400 in the past year.