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Wellington property prices hit a new high for the third consecutive month

The average asking property price in Wellington hit a new high for the third consecutive month in November, climbing 9.4 per cent on last year to $616,700.

“That’s a $50,000 increase in 12 months,” according to Head of Trade Me Property Nigel Jeffries.

He said every region in the country experienced a year-on-year increase, with the national average asking price rising 3.8 per cent on last year to $663,250, according to the latest Trade Me Property Price Index.

“November was a big month for properties hitting the market but despite more stock, property prices still charged ahead. We saw 5 per cent more properties for sale than October and 4 per cent more than November last year with demand also continuing to remain very high.”

Jeffries does not expect the easing of restrictions around loan-to-value ratios (LVRs) by the Reserve Bank and continued low interest rates to have a significant impact on the property market.

“However, this will open the door for more first-home buyers to enter the market which is great news for those wanting to get a foot on the property ladder.”

Wellington City, Lower Hutt and Upper Hutt all reached new records in November.

“The average asking price in Wellington City hit $729,260, up 9.8 per cent on last year, while Lower Hutt and Upper Hutt came in at $568,550 (up 6.4 per cent) and $552,950 (up 8.9 per cent) respectively.

“The Wellington property market is yet to see the slowdown in growth that Auckland has experienced over the past 12 to 18 months. Prices in the capital have been steadily increasing since June 2016 and it looks set to stay that way for the foreseeable future.”
Supply is struggling to meet demand in the capital, and the number of properties for sale was down 7 per cent on November last year.

Jeffries said one to two bedroom houses are still the pick of the bunch for buyers, especially in the main centres.

“The average asking price for small houses increased 9 per cent on last November to $460,100 and it seems some Kiwis are opting for smaller properties particularly in Auckland and Wellington.

“Apartments, townhouses and units in Wellington were popular in November with the average asking price climbing 11.5 per cent year-on-year to $493,700. We’re seeing a lot of interest for urban properties in the capital as they are often in a better location, require less maintenance and the mortgage repayments are a little easier to swallow,” Jeffries said.