PHOTO: Trade Me Property.
The property market is showing continual signs of revival, with month-on-month price increases recorded across every region, according to Trade Me’s Property Price Index for October.
The national average asking price for a property reached $860,750 in October, up 2.4 per cent when compared with September.
“Whilst two per cent may not seem like a lot, it’s the biggest month-on-month increase in almost two years, which means sellers could get an extra $20,000 for their property,” said Trade Me Property Sales Director Gavin Lloyd.
“This is confirmation that the market is starting to turn following three consecutive months of steady increases which will be welcomed news for those thinking about listing.”
Hawke’s Bay leading the way
The Hawke’s Bay region emerged as the frontrunner in property price growth in October, with average asking prices surging 4.1 per cent to $771,600.
“This was most evident in Hastings, where prices skyrocketed by 7 per cent to $788,300. Napier, on the other hand, maintained its position as the most expensive area in the region, with average prices rising 2.6 per cent to $821,350,” said Mr Lloyd.
While the average asking price has increased month-on-month, the market is still shy of the record highs witnessed in 2022.
“Even with a year-on-year decline of 8.1 per cent, Auckland remains the most expensive region in the motu, with average asking price still over a million dollars at $1,054,800,” Mr Lloyd added.
“In contrast, the West Coast, despite experiencing a 7.3 per cent increase to $469,900, remains the most affordable option for homebuyers. It’s also the only region to defy the national trend, having consistently recorded year-on-year increases for the past five months.”
Policy changes could up property supply
The supply of properties for sale dropped by 6 per cent year-on-year across Aotearoa, with Wellington recording the largest decline of 26 per cent compared to October last year.
As the new government takes shape, Mr Lloyd anticipates that upcoming policy changes could incentivise more Kiwi to put their homes on the market.
“With interest rates on the rise, some property owners who bought in recent years may be considering selling, particularly if the bright line test is reduced,” said Mr. Lloyd.
“National’s campaign promise to lower the capital gains tax for properties held for two years or less, coupled with ACT and NZ First’s outright opposition to the tax, suggests that the property market might see a significant shakeup now the new cabinet is finalised,” added Mr Lloyd.
Regional demand heats up ahead of Summer
Property demand in Aotearoa surged by 7 per cent, with several regional areas experiencing a remarkable double-digit percentage increase compared to September.
Gisborne led the way with a substantial 16 per cent rise in listing views, closely followed by Hawke’s Bay, which saw a 14 per cent jump.
“While Auckland and Christchurch properties observed a slight uptick in listing views, it seems that Kiwi are keen to trade the bustling city life for the serene coastal towns of the east coast of the North Island. With consistent sunshine hours and beautiful beaches it’s no surprise that these areas are becoming increasingly popular summer destinations for Kiwi,” said Mr Lloyd.
Additionally, Marlborough and Wellington both recorded a significant 12 per cent increase in listing views in October when compared with September.