New Zealand property prices dip in December, ending growth streak

December sees property price reduction

New Zealand property prices dip in December, ending growth streak

The national average asking price for properties in New Zealand experienced a decrease in December, concluding a three-month period of price increases, according to Trade Me Property.

Trade Me Property customer director Gavin Lloyd (pictured above) reported that the average asking price dropped to $849,550 from November’s $854,900.

“While the average asking price has dipped, both month-on-month (-0.6%) and year-on-year (-1.7%) the declines are modest and less than what we’ve seen at the same time of year in previous years,” Lloyd said.

Regional property price trends

Despite the overall decrease, Auckland continues to be the priciest region in New Zealand, with December’s average asking price slightly reduced to $1,047,800 from $1,053,100 the previous month.

Over the year, Auckland’s prices saw a reduction of $20,000 (-1.9%). Otago outpaced the Bay of Plenty to become the second most expensive region, with prices standing at $878,400 in December.

In contrast, the Bay of Plenty, which had been the runner-up most of 2024, recorded a lower average asking price of $869,800.

Lloyd noted significant local variations within regions.

“If we look at the Otago region both Queenstown-Lakes and Wanaka are driving the increases with month-on-month growth of 6.3% and 3.7%, respectively,” he said.

“These increases are in fairly stark contrast to the rest of the region which saw declines in the average asking price in December (MoM).”

Sharp decline in property demand

December also marked a significant downturn in property market demand, witnessing a 30% decline – the most substantial drop of 2024.

Major cities such as Wellington, Christchurch, and Auckland saw the steepest falls in demand, with decreases of 39%, 35%, and 34% respectively.

Lloyd attributed this decline to seasonal variations.

“We often see a seasonal impact on demand, particularly in December when Kiwi have other priorities heading into the festive season and summer holiday period,” he said. “We can expect things to pick back up as buyers return to the market with renewed focus on finding a new property to call home.”

Supply fluctuations

The supply of available properties decreased by 14% month-on-month in December yet showed a significant year-on-year increase of 17% compared to December 2023, indicating a fluctuating market that may offer opportunities for buyers in the coming months.