Auckland and Wellington see largest price falls
Trade Me’s latest Property Price Index revealed a moderation in the pace of property price declines across New Zealand, with signs of market stabilisation.
The national average asking price stood at $858,200 in January, marking a 2.3% decrease from the previous year.
“While house prices have been consistently falling, the rate of decline is gradually easing, with smaller drops in recent months,” said Casey Wylde (pictured above), a spokesperson for Trade Me. “Last year was tough for homeowners with prices falling and interest rates going up, but the slower drop now might mean things are getting more stable in 2024.”
Regional shifts in property prices
Auckland and Wellington experienced the most significant decreases, with asking prices down by 5.7% and 5.3%, respectively. Manawatu/Wanganui also saw a notable decline of 3.9%.
In contrast, the West Coast emerged as an outlier; despite a notable increase of more than $45,000 from January 2023, it remains the most affordable region for home buyers, with an average asking price of $470,300.
“The West Coast continues to defy the norm, experiencing a 10.8% increase in property prices compared to the same time last year. While most regions have seen prices drop, the West Coast has consistently seen prices rise over the past eight months,” Wylde said.
On the flip side, Auckland continued to be the most expensive region in the country, with an average asking price of $1,053,400, down 5.7% from the previous year.
Waiheke Island stood out within Auckland as the costliest area, with properties going for an average of $1,750,000, significantly higher than in the North Shore, the second most expensive area, where the average price is $1,271,000. The high prices on Waiheke Island are attributed to its luxury and beachfront properties.
Close behind Auckland, the Bay of Plenty is the second priciest region, with an average price of $893,150, largely influenced by a 4.1% price increase in the Western Bay of Plenty, bringing the average to $1,058,450, the TradeMe Property data showed.
Urban property trends
Urban housing types, including units, apartments, and townhouses, have all seen price reductions, presenting an opportune moment for first-time buyers and those looking to downsize.
Units experienced a slight 0.7% drop, while townhouses and apartments saw decreases of 2% and an unspecified percentage, respectively. Wellington, in particular, saw a significant 11.7% drop in unit prices.
Surging demand amid supply constraints
January saw a substantial 37% increase in property market demand, with Wellington, Hawkes Bay, and Nelson experiencing the highest surges in interest. Despite a modest 1% increase in nationwide supply from December, overall listings are still down 2% year-on-year, highlighting ongoing supply challenges, especially in Wellington with a 15% drop in listings, the latest Trade Property data showed.
Read the Trade Me Property media release here.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
