Prospective home buyers are facing record property prices in the Wellington region after the average asking price climbed 12.3 per cent from last year to reach $593,250, according to the latest Trade Me Property Price Index.
Head of Trade Me Property Nigel Jeffries said the Wellington property market isn’t showing any sign of slowing down.
“In September 2016, the average asking price was $479,650 which means property prices in the capital have increased almost $115,000 (or 24 per cent) in 24 months.
“If this rate of growth continues, the Wellington property market could be discussed in similar terms to Auckland – though we’re some way away from seeing the massive numbers we’ve seen in our largest city.”
Jeffries said around the Wellington region, Masterton had the biggest annual increase with a 20 per cent jump in average asking price to $408,850. The Hutt Valley saw record asking prices in September with Upper Hutt rising 15.5 per cent to $538,500 and Lower Hutt up 10.4 per cent to $559,300. The average asking price in Wellington City rose 8.5 per cent on the year prior to $700,400.
“Nationwide, the average asking price rose 2.3 per cent on August to $645,250 and every region saw a year-on-year increase as the country starts to warm up after winter.”
The average asking price for a medium (3-4 bedroom) house in Wellington jumped 12.7 percent on last year to a record $624,950. Smaller houses in the capital were also up a significant 14.2 per cent on last year to $466,450.
Apartments, townhouses and units across New Zealand showed solid growth in September with the average asking price jumping 4.9 per cent year-on-year to $548,000.
“We’re continuing to see more Kiwis downsize their home and first home buyers move into these urban properties, attracted by smaller mortgage repayments and less maintenance costs. Apartments are still the hot favourite with a 7.2 per cent increase in average asking price nationwide,” Jeffries said
In Wellington, townhouses hit a new record of $537,350 after climbing 7 per cent.