Market tale of two cities
New Zealand’s property market is a tale of two cities – at least as far as Trade Me is concerned.
The website said the average asking price among its listings in the Wellington region was up $52,550 in the year ended in August, to $632,300.
Trade Me Property head Nigel Jeffries said there were no signs that Wellington’s rapid property price growth would slow.
‘‘With prices falling in Auckland, all eyes are now on the Wellington property market, which is seeing some phenomenal price growth and giving homeowners plenty of reasons to smile.’’
Jeffries said a lack of supply in Wellington was keeping prices high. The number of properties for sale in the region in August was down 4 per cent on the previous year.
‘‘As we head into spring, we expect to see a flurry of activity in the Wellington market which will likely bring some strong double-digit growth and record asking prices.’’
Porirua hit a new high last month, up 10 per cent year on year to an average asking price of $706,200. Masterton was also at a record, up 6 per cent to $434,000.
Jeffries said property prices in Upper Hutt rose 9.6 per cent on the previous year to $564,800.
Lower Hutt saw prices increase 7.7 per cent to $584,750 while Wellington prices rose 10.4 per cent to $756,300.
But prices in Auckland fell 2.4 per cent year on year to an average asking price of $873,500.
The national average asking price edged up 2 per cent on August last year to $643,350, but the regions were a mixed bag.
‘‘Gisborne, Manawatu¯ / Whanganui, Otago and Southland all reached new records in August after some impressive double-digit growth. Property prices in Auckland and West Coast, on the other hand, cooled with prices in both regions dipping approximately 2 per cent on the year prior,’’ Jeffries said.
Demand nationwide was up 9 per cent compared with 2018.
‘‘Borrowing has never been more affordable thanks to the record low interest rates. We reckon we will see some strong price growth and record average asking prices in the coming months as the property market braces for the busy spring season and more first-home buyers and investors eye up their options,’’ Jeffries said.