What factors attributed to this unprecedented growth?
New Zealand has witnessed a significant increase in property prices over the past decade, with 12 of its 19 regions seeing prices double and the national average asking price jumping 77.5% from $504,388 in 2014 to $895,289 in 2023, analysis by realestate.co.nz has revealed.
Despite a dip in prices last year, the long-term trend remained decidedly upward.
Sarah Wood (pictured above), CEO of realestate.co.nz, said the data highlights the resilience of the real estate market.
“We saw the market go through a correction in 2023 after rapid growth during the previous few years,” Wood said. “Despite prices dropping back last year, they are still up substantially in most places when we compare them to the years before COVID-19 ignited the market.
“It’s welcome news for the vast majority of Kiwis whose biggest asset is their home that although we will see peaks and troughs, prices are continuing to trend upward over the long term.”
COVID-19 and the surge in property prices
The years between 2019 and 2022 were particularly notable for property price increases, with almost a 40% rise in the national average asking price. This surge contrasted sharply with the decade up to 2019, when price growth was more modest and some districts even experienced declines.
The onset of 2020 marked a new era of growth, with property prices in nearly all districts climbing over the decade. The most significant shifts occurred in 2021 and 2022, witnessing a remarkable surge in property valuations across the country. By 2021, 34 out of 76 districts had seen prices double over the decade, and by 2022, this number rose to more than half, with 43 districts achieving this milestone.
“This unprecedented growth can be attributed to several factors, including low interest rates, population growth, and limited housing supply, which have combined to create a competitive market environment,” Wood said.
Kawerau, in the Bay of Plenty, led the charge with a staggering 261.2% increase over the decade, maintaining its position at the top for five consecutive years. The Hauraki Gulf Islands followed with a 171.8% increase, marking them as the only Auckland district to double in value over the past 10 years.
Conversely, districts within the Canterbury region saw the smallest growth over 10 years, with increases ranging from 39.2% to 40.9%.
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