2019 year saw continued growth in the regions
Analysis of all residential real estate sales throughout 2019 has shown that almost every region across New Zealand saw an increase in median sale price, with the exception of Auckland which maintained a median price of $850,000 and West Coast which decreased -1.3% to a median price of $197,500 (from $200,000 in 2018).
The national median house price reached a record median of $590,000 and the New Zealand excluding Auckland figure was a record median price of $500,000.
Regions with the largest
percentage growth in median price were:
• Gisborne: +21.6% (from $320,000 in 2018 to $389,000 in 2019)
• Southland: +20.4% (from $250,000 in 2018 to $301,000 in 2019)
• Manawatu/Wanganui: +19.4% (from $310,000 in 2018 to $370,000 in 2019)
Bindi Norwell, Chief Executive at REINZ says: “2019 was a strong year for price growth, with 14 out of 16 regions reaching new annual median price records. The only exceptions were Auckland, where prices continued to remain steady at $850,000, and West Coast where there was a small decrease of -1.3% to $197,500, meaning the median price was just $2,500 off the record price of $200,000 set in 2018.
“Areas of particular note when it came to house price increases were Gisborne where median prices increased 21.6% from $320,000 in 2018 to $389,000 in 2019. This is the second consecutive year of strong growth in Gisborne, with prices having increased 37.3% from $283,250 in 2017. Additionally, Manawatu/Wanganui also saw strong continued growth, increasing 37.0% over the two years from $270,050 in 2017 to $370,000 in 2019 – almost a $100,000 difference.
“Prices likely increased due to several factors including the ongoing housing shortage, the increased demand for quality properties with decreased listings coming to market in 2019 (down -8.1% across New Zealand when compared to 2018), low interest rates and the continued movement of Aucklanders into the regions,” continued Norwell.
“The only region to see a decline in median price was West Coast which saw a -1.3% decrease in median price year-on-year – from $200,000 in 2018 to $197,500 in 2019. While the West Coast was the only region to decrease in median price, the movement was small and was still an increase when compared to 2017(+3.9%), when the median price was $190,000. The Auckland market has remained flat for around 2.5 years now, however, towards the end of 2019 we started seeing some potential signs of growth, so it will be interesting to see what 2020 will bring for the region,” points out Norwell.
The number of properties sold across New Zealand in 2019 decreased -1.2% when compared to 2018. For New Zealand excluding Auckland the number of properties sold decreased -1.1% in 2019 when compared to 2018.
Bindi Norwell, Chief Executive at REINZ says: “The decrease in the number of sales in 2019 is not too surprising as we have also experienced an -8.1% decrease in the number of listings in 2019 when compared to 2018. There were 106,819 listings in 2019 compared to 116,193 listings in 2018, that’s 9,374 fewer listings in 2019 than the year prior.
“The decrease in sales in 2019 is likely due to a number of factors including, but not limited to, the decrease in supply, combined with increased legislation for investors and increased prices across the country. Significant regulatory changes, including the proposed Capital Gains Tax also made a significant impact on sales last year as investors considered their options as they waited for an outcome,” concludes Norwell.