Six regions in the New Zealand property for sale market now have an average asking price more than $500,000, according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries says this time last year Auckland was the only region that had an average asking price above this level.
“The Bay of Plenty was the first region to join Auckland, nudging the bar in December last year while Nelson debuted in September. Then in the last month alone, Waikato, Wellington and Northland have also joined the club.”
He says Auckland's average asking price crossed that threshold six years ago.
“Auckland became a half-million dollar region back in late 2010, and last month cracked $900,000 in average asking price for the first time, as it continues its inexorable rise towards the million dollar mark."
In November, the average asking price across New Zealand rose to $624,850, up 1.1 per cent since October and up 9.8 per cent since November 2015.
The rise in average asking price in the City of Sails is outpacing the national figure, breaking through to another record high in November to $911,800, a 1.6 per cent lift on October and up 13.4 per cent over the past 12 months.
Waikato becomes a powerhouse region
The average asking price in the Waikato region has shot up by over $100,000 in 12 months, up 27.4 per cent from $393,400 to $501,100.
“A graph looking back at the last five years resembles the proverbial hockey stick. This spectacular appreciation of property stands in stark contrast to the period between 2008 and 2014 where average asking prices were unchanged at around $360,000. It wasn't until 2015 that the hill became a lot steeper,” says Nigel.
The $100,000 lift in average asking price in the Waikato over the past 12 months matches the monetary rise in Auckland, but represents a 13.4 per cent increase in the City of Sails.
Around the grounds
All but one of the 15 regions stepped up a notch in November, with just the West Coast showing a dip in average asking price, down 8.3 per cent. Twelve regions lifted over 5 per cent in the past year and seven regions saw double-digit inflation.
“Gisborne had the single biggest rise in average asking price in November, but this is partly due to the mix of recent listings in the area. We'd be cautious about reading too much into this just yet.”
In the larger regions, the biggest increases were seen in the Waikato (+27.4 per cent), followed by Nelson/Tasman with a 16.6 per cent lift over the past 12 months to $535,550. Hard on its heels was Northland with a 16.4 per cent rise in the past year to $505,600.
The Wellington market broke through the half-million dollar mark in November, up 10.6 per cent in the past 12 months to a record average asking price of $508,850.