NZ house prices: 11 of 15 regions hit record high

Main centre's average asking price now only $17,000 shy of $1 million

NZ house prices: 11 of 15 regions hit record high

House prices increased across New Zealand in September 2021, with 11 of the 15 regions seeing record-breaking house prices, while the national average asking price hit a new high of $852,750, according to the latest Trade Me Property Index (Index).

It noted that September 2021 saw double-digit jumps across the country, with the most dramatic increases seen in ManawatÅ«/Whanganui (up 33% to $606,200) and Hawke’s Bay (up 30% to $778,400). Meanwhile, the average asking price in Auckland rose by 16% to a record-breaking $1,126,350.

Canterbury’s housing market was also red-hot last month as its average house price broke the $600,000 mark for the first time. It also saw the largest annual increase of all time, climbing 23% from last September to $626,400. Meanwhile, in Christchurch, prices were up 20% to a record-breaking $628,450.

“The property market in Canterbury, and particularly Christchurch, has really taken off in the last 12 months. We’re hearing anecdotally from a lot of agents in Canterbury that Kiwis from Wellington and Auckland are considering making the move to areas like Christchurch where they can get more bang for their buck,” said Trade Me Property sales director Gavin Lloyd.

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When it comes to main centres, the average asking price in Wellington City was notable last month, at only $17,000 shy of $1 million, after seeing the largest annual increase of all time, according to the Index.

The average asking price in the city also rose 20% from last September to a record-breaking $982,900. And, for the first time since April, the city saw an increase in the number of properties on the market last month compared with the year prior, with listings up by 2%.

However, Lloyd pointed out that the latest average asking price in Wellington City was not the biggest price jump in the region.

“Property prices right across the Wellington region saw some ‘eye-watering’ increases in September, with most districts hitting new records,” he said.

For example, Masterton saw a 32% jump in its average asking price, reaching a record-breaking $633,950. Meanwhile, house prices in the Kapiti Coast and Upper Hutt rose by 31% to a new high of $914,000 and $854,600, respectively.

Lloyd expects spring to be an “interesting time for the Wellington market.” However, he warned that the Reserve Bank of New Zealand’s (RBNZ) decision to increase the official cash rate (OCR) might force many banks to increase their interest rates – taking the heat out of the market.