West Coast leads
New Zealand’s property market recorded its third straight month of price increases in November, according to the Trade Me Property Price Index.
The national average asking price reached $854,900, reflecting a 0.7% increase month-on-month.
Gavin Lloyd (pictured above), Trade Me Property’s customer director, noted that November’s growth was more subdued compared to October, which saw a sharper rise of over 3%.
“Month-on-month this marks an increase of 0.7 per cent, which is a more modest increase than October,” Lloyd said.
Regional variations: West Coast leads, Gisborne declines
According to Trade Me Property data, the largest price increases in November were recorded on the West Coast (+4.8%), followed by Nelson/Tasman (+2.6%), Northland and Marlborough (both +2.2%), and Auckland (+1.4%). In Auckland, the average asking price returned above the $1 million mark, continuing its October trend.
On the flip side, some regions saw declines, particularly:
- Gisborne (-3.3%)
- Hawkes Bay (-1.1%)
- Otago (-0.7%)
Looking at annual trends, Lloyd described a mixed outlook:
- South Island: Positive movement dominates, with five of six regions showing year-on-year growth. The West Coast led the way with a 10%+ increase, raising the average asking price to $517,700. Nelson/Tasman was the exception, down 1.9% to $833,950.
- North Island: Property prices are down across all monitored regions compared to November last year, with the sharpest drops in Gisborne (-7.0%), Hawkes Bay (-3.6%), and Wellington (-2.3%).
Skyrocketing listings keep property price growth modest
The record-breaking supply of properties for sale has tempered property price increases in some regions. Lloyd pointed out that the number of listings nationwide rose 18% year-on-year in November, hitting an all-time high.
“Nationwide, the number of properties for sale was up 18 per cent year-on-year, with each of the 15 regions Trade Me Property monitors showing listings growth both month-on-month and compared to the same time last year,” Lloyd said.
Certain regions stood out with the highest property supply growth:
- Wellington and Gisborne (+32% year-on-year)
- Hawkes Bay (+31%)
- Otago (+27%)
Outlook for the property market
With property supply at unprecedented levels, buyers currently have more choices, which has likely contributed to the slower pace of price growth in some areas.
While regions like the West Coast continue to see strong gains, others, particularly in the North Island, face downward pressure due to increased property supply and regional economic challenges, Trade Me Property reported.
Lloyd’s analysis highlighted that property supply trends and regional dynamics will remain key drivers of the New Zealand property market as 2024 draws to a close.
Visit the Trade Me Property website to read the report.
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