Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Demand Soars For Property In Wellington

Demand for Wellington properties saw the largest annual percentage increase on record in August, after climbing 34 per cent year-on-year, according to the latest Trade Me Property Price Index.

Trade Me Property spokesperson Aaron Clancy said that nationally, Wellington saw the biggest jump in demand last month as a flurry of buyers hit the market in August. “Spring is typically a busy period for the property market when the sun is shining, everything is starting to look greener and most properties are looking their best. However, this year we saw the spring rush begin much earlier than usual, signalling a very busy time ahead for the property market.

“Views are skyrocketing right around the region, we saw huge jumps in interest from prospective buyers across all districts. The Kapiti Coast saw a 68 per cent jump in demand, followed by South Wairarapa up 44 per cent and Wellington City which saw a significant 40 per cent increase in demand when compared to August last year.

Mr Clancy said properties for sale in Wellington are receiving a lot of interest within hours of being listed.“The most popular listing in the country last month was a four-bedroom house in Southgate, Island Bay that was watchlisted 553 times in its first two days onsite.

“Growing demand in the Wellington region is putting pressure on prices. In August we saw the average asking price in the Wellington region climb 9 per cent year-on-year to $689,500.”

Kapiti a new favourite

Mr Clancy said Kapiti Coast had a standout month in August as Kiwis look outside the main centres for more cost effective properties. “The average asking price in Kapiti reached $685,000 in August - a 16 per cent increase on the same month last year - making it the third most expensive district behind Wellington City ($799,100) and Porirua ($723,950).

“We have not seen Kapiti feature in the top three most in-demand and expensive districts in the Wellington region previously. With prices creeping up right around Wellington, Kiwis are looking at other options and weighing up a longer commute in exchange for cheaper house prices.”

“We also reckon that some Kiwis have become accustomed to working from home after the lockdown, this obviously reduces the issues many have with commuting and makes districts further from the CBD even more appealing.”

National house prices grow by 9%
Wellington was not the only region that saw prices climb in August, with the national average asking price growing by 9 per cent year-on-year in August to $701,750.

“This marks the second consecutive month where the national average asking price has shown such massive growth, with July also seeing a 9 per cent year-on-year increase. Prior to this, the last time we saw such a large increase was in 2017.”

Mr Clancy said demand appeared to be behind the increase. “Nationally, demand for properties for sale was up by 19 per cent in August when compared with last year, with all regions seeing year-on-year increases.

“Looking at the regions, the ones that saw the largest increases in demand were Wellington (34%), Nelson/Tasman (28%) and Manawatu/Whanganui (25%).”

Nationally, market supply, however, dropped by 3 per cent year-on-year with most regions seeing supply slow when compared with August last year.

“To put it simply, it’s a great time to be selling your house - demand is extremely high right across the country and supply isn’t keeping up which means potential buyers must put their best foot forward.”

Auckland house prices edge closer to $1m
The average asking price in the Auckland region reached $948,800 in August. “This is up 8.6 per cent when compared with the same month in 2019, when it was $873,500.”

“The average asking price in Auckland city was $1,137,950, up 18 per cent year-on-year from $967,550 last August.”

Mr Clancy said this made Auckland city the second most expensive district in the region, with North Shore City taking out the top spot with an average asking price of $1,141,300. “In third place, Rodney saw an average asking price of $1,003,750.”

Price growth across regions
The Manawatu/Whanganui had a record-breaking month in August, with the region’s average asking price climbing 16 per cent year-on-year to $454,300. “ Demand in the region was also up 25 per cent when compared with August 2019.”

A new record was also set in the Bay of Plenty, with the region’s average asking price seeing a 9 per cent year-on-year increase to $700,550.

After Wellington, demand in the Nelson/Tasman region saw the second-highest year-on-year increase in August. “Tasman appeared to be driving this, with demand in the district up by 42 per cent when compared with August last year.

“This is another indicator that in the post lockdown world, people are considering buying in locations they may have previously seen as too isolated.

Small homes see large price growth
The average asking price increased for houses of all sizes in August. “Large houses (5+ bedrooms) and medium houses (3-4 bedrooms) both saw a 9 per cent jump in average asking price, to $1,210,350 and $705,250 respectively.”

“Small houses (1-2 bedrooms) saw a 15 per cent increase on August 2019, with an average asking price of $512,000.”

Apartments, townhouses and units all saw year-on-year increases in August. “Townhouses outside of Auckland had a record-breaking month, with the average asking price reaching $534,650.”

© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>


RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>


Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>