Porirua in uncharted waters
WELLINGTON CITY ‘S median house price last month reached $825,000 for the first time while Porirua City’s improved to an unprecedented $700,500.
These record prices contributed to Wellington’s overall median house price jumping 6.3 percent on the same time last year, to $640,000, the Real Estate Institute of NZ reports.
“Sales in the Wellington region were up 2.8 percent year-on-year with sales in Upper Hutt City increasing by 57.5 percent, from 40 in September 2018 to 63 in September 2019,” REINZ regional director Mark Coffey says.
“However, with only eight weeks’ worth of inventory available to the market and a 17.6 percent decrease in new listings in the region, the demand for properties close to schools and public transport continues.
“There is still a lack of rentals available, but we are starting to see investors show renewed interest in the market, which may assist with the shortage of rental properties available.
“First-home buyers currently make up around half of the market. Going forward we expect the usual uplift as we head into summer.”
Wellington City’s median price has skyrocketed by 13 percent year-on-year, second only to the Kapiti Coast’s 21.1 percent hike, from $505,000 to $611,600 (although month-on-month the district’s median declined 1.4 percent).
South Wairarapa’s median of $490,000 was down 3.4 percent year-onyear and down 4.4 percent compared to August.
But the steepest annual fall was Carterton’s 17.4 percent, to $450,000, although the median rebounded 16.9 percent month-on-month.
Lower Hutt’s September median was $595,000, compared to $553,500 in August and $565,000 a year earlier; Upper Hutt posted a five percent annual gain, to $565,000, but was down 2.1 percent month-on-month.
Masterton’s median price rose in both measures, up 6.4 percent annually and 3.8 percent monthly, to $415,000.
The 30 days it took to sell a house in the Wellington region was three fewer than the 10-year average for September while the level of inventory for sale currently was the same as in September 2018.
Median house prices across NZ increased by 6.6 percent in September, to a record high of $597,000, up from $560,000 a year earlier.
These results were in line with the REINZ House Price Index, which saw property values increase 3.6 percent annually.
REINZ reports the number of residential properties sold in September was the highest for the month in three years: 5896 (or 3.3 percent more than in September 2018).
“This suggests that we’re starting to see the usual spring uplift and also that more confidence is starting to creep back into the market,” REINZ chief executive Bindi Norwell says.