Million-dollar homes persist
According to the latest data from Trade Me’s Property Price Index for March, New Zealand’s property prices have increased for the second consecutive month.
The national average asking price for a property was reported at $885,100, marking a 2.2% increase from the same time last year.
“Despite this, buyers can still expect to pay over a million dollars for a larger property in Pōneke,” Trade Me spokesperson Casey Wylde (pictured above) said. “The average asking price for a three-to-four-bedroom house is $1,019,500 and that jumps to $1,371,250 when looking at places that have five or more bedrooms.”
Wellington experiences notable price drops
Despite the overall national rise, property prices in Wellington city have declined across all sizes. Properties with more than five bedrooms saw the most significant drop, plummeting by 9.2%, while three-to-four-bedroom homes decreased by 5.5%.
“We are still seeing prices come down in the main areas of the North Island, for example in the extended Auckland region, there was a decline of 1%, bringing the average asking price to $1,083,650,” Wylde said. “The Wellington region saw a decrease of 1.3%, with the asking price now at $853,350.”
Regional variations and urban trends
In contrast to Wellington, the South Island has witnessed a robust increase in property prices. The West Coast led these hikes with a dramatic 10.2% increase to $481,550.
Other areas like Otago and Southland saw increases of 7.9% and 3.8%, respectively.
In urban centres like Christchurch, property prices are continuing to climb, with the average asking price reaching $711,450, a 4% year-on-year increase.
Shifts in market demand and supply
The property market is also seeing changes in demand and supply dynamics. Interest in properties on the market has risen year on year, showing a 7% increase in February compared to last year, with regional areas like Gisborne, Northland, and Hawkes Bay experiencing significant spikes.
The Trade Me Property data also showed that the national housing supply has increased by 8% year on year, which could help balance the demand for properties. This shift presents potential opportunities for buyers, especially those looking to downsize or invest in smaller dwellings, after observing a 10.7% decline in prices for one-to-two-bedroom homes.
To read the Trade Me Property news in full, visit the Scoop Business website.
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