What’s happening with NZ property prices?

Housing prices across New Zealand rose again in August 2021 despite the recent COVID-19 lockdowns and the government’s efforts to slow down the market, according to the Real Estate Institute of New Zealand’s (REINZ) latest data.

The report found that the median prices of residential properties across the country increased by 25.5% from $677,400 in August 2020 to a record $850,000 in August 2021, with four of 16 regions having reached new record median prices and 25 districts having reached new record median highs.

Auckland took the spotlight in the latest report once again, hitting a record median house price of $1,200,000 last month, up 26.4% from $949,500 in August last year.

REINZ explained that the growth in house prices was felt across the region, with five of seven districts having reached new record median prices: Rodney District ($1,280,000), Manukau City ($1,157,000), Waitakere City ($1,120,000), Franklin District ($950,000), and Papakura District ($940,000).

Excluding Auckland, the median house price for New Zealand increased by 22.8% from $570,000 in August 2020 to a new record of $700,000 in August 2021.

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Aside from Auckland, three other regions recorded median house prices last month:

• Waikato: a 23.8% increase from $630,000 in August 2020 to a new record of $780,000 in August 2021. In addition, Hamilton City ($840,000), Hauraki District ($620,000), Matamata-Piako District ($755,000), and Taupo District ($790,000) all reached record median highs;
• Manawatu/Wanganui: a 35.3% increase from $451,000 in August 2020 to a new record of $610,000 in August 2021. In addition, Horowhenua District ($625,000), Palmerston North City ($720,000), Ruapehu District ($446,000), Tararua District ($476,000), and Whanganui District ($560,000) all reached record median prices; and
• Canterbury: a 24.3% increase from $498,000 in August 2020 to a new record of $619,000 in August 2021. In addition, Christchurch City ($650,000), Kaikoura District ($675,000), and Waimakariri District ($645,000) all reached record median prices.

REINZ chief executive Jen Baird said the latest COVID-19 lockdown did not dampen the demand for, or confidence in, the housing market compared to the demand and confidence in early 2020.

“We have heard from across the industry that prices achieved on sales completed in the early part of this lockdown continue to illustrate an ongoing excess of demand over supply; prices are still rising,” Baird added.

“The strength of the market sees the REINZ House Price Index reach a new high nationally. Nine of the 12 regions across New Zealand reached a record level in August, showing that the underlying value of property is holding strong.

“Looking at Auckland, we’ve seen another record median price, the ninth record in the last 12 months – this growth is spread across the region with five of the seven districts reaching new record median prices in August.”