PROPERTY MARKET UPDATE

RECORD MEDIAN HOUSE PRICES FOR HALF OF NZ

B Y BINDI NORWELL, REINZ CEO

Median house prices across New Zealand increased by 16.4% in August to $675,000, up from $580,000 in August 2019 and up from $659,000 in July (a 2.4% lift) and every region in the country saw an annual increase in median house prices, according to the latest data from the Real Estate Institute of New Zealand (REINZ).

Median house prices for New Zealand excluding Auckland increased by 14.2% to a new record median price of $570,000, up from $499,000 in August last year and up from $557,500 in July this year.

Additionally, Auckland’s median house price increased by 16.0% to $950,000 a new record high up from $819,000 at the same time last year, and up from $918,097 in July this year (a 3.5% increase).

Over and above Auckland, 7 regions saw record median prices during August:

Northland with a 16.6% increase to $590,000 up from $506,000 at the same time last year. Additionally, Whangarei District saw a record median price of $610,000 Waikato with a 16.7% increase to $628,000 up from $538,000 at the same time last year, and the fourth record median price in a row. Additionally, 3 districts in the Waikato region saw record median prices – Matamata-Piako District ($587,000), Otorohanga District ($418,500) and Waipa District ($715,000)

Manawatu/Wanganui with a 15.1% increase to $450,000 up from $391,000 at the same time last year. Additionally, 3 Districts within the Manawatu/Wanganui region saw record median prices – Tararua ($320,000), Manawatu ($535,000) and Whanganui ($375,000)

Taranaki with a 15.3% increase to $451,000 up from $391,000 at the same time last year Canterbury with a 13.0% increase to $497,000 up from $440,000 at the same time last year. Additionally, 2 Districts within the Canterbury region saw record median prices – Ashburton District ($391,500) and Waimakariri District ($515,000)

Otago with a 17.2% increase to $580,000 up from $495,000 at the same time last year

Southland with a 20.3% increase to $373,000 up from $310,000 at the same time last year.

Bindi Norwell, Chief Executive at REINZ says: “For the last few weeks we’ve been hearing reports from around the country of vendors achieving good prices for the sale of their homes; but we would never have guessed that 8 regions and 17

Districts/Cities across the country would see record median prices just 4 months after the entire country was in lockdown. The housing market’s recovery post-lockdown over the last few months has been astonishing and has certainly surpassed many predictions.

“August saw record median prices in Rotorua District ($510,000), Tauranga City ($745,000), Lower Hutt City ($670,000), Upper Hutt City ($663,200), Papakura District ($775,000), Rodney District ($961,000) and Waitakere City ($890,000),” continues Norwell. “At this point last year, the Hawke’s Bay region had not had a median price over the $500,000 mark and now the region is extremely close to exceeding the $600,000 median mark. It’s a similar picture in Otago, where the region had only seen one month with a median price over the $500,000 mark and now, it’s closer to the $600,000 mark than the $500,000 mark,” she continues. “The combination of low interest rates, the removal of LVRs, the lack of listings, people’s aspiration to have more space/a bigger backyard, catch up post lockdown and fi rst time buyers’ desire to get onto the market have all contributed to the uplift in prices we’ve seen over the last few months. Unless we see more listings come to the market before Christmas, we may start to see additional pressure on house prices and affordability,” points out Norwell. The number of residential properties sold in August across New Zealand increased by 24.8% from the same time last year (from 6,132 to 7,652) – the highest number of properties sold in an August month for 5 years. For New Zealand excluding Auckland, the number of properties sold increased by 16.7% when compared to the same time last year (from 4,320 to 5,040) – the highest for the month of August in 4 years. In Auckland, the number of properties sold in August increased by 44.2% year-on-year (from 1,812 to 2,612) – the highest for the month of August in 5 years.

“For many parts of the country, August was an extremely busy month sales volume wise, with the highest number of properties sold for the month of August in fi ve years bolstered by an uplift in sales volumes in Auckland, Nelson,

A N N U A L M E D I A N PRICE CHANGES $ AUCKLAND 16.0% 16.7% $ $ NORTHLAND 16.6% BAY OF PLENTY 11.0% $ Record Median Price $ WAIKATO 9.5% 15.3% $ GISBORNE

NATIONAL MEDIAN PRICE: TARANAKI 15.1% 20.1% $675,000 2.2% MANAWATU / WANGANUI HAWKE’S BAY 16.4% NELSON 9.1% 13.2% WELLINGTON 12.8% 34 MEDIAN DAYS TO SELL: WEST COAST 18.1% TASMAN $ MARLBOROUGH 13.0% $ CANTERBURY Source: REINZ Monthly Property Report 11 September 2020. SOUTHLAND 20.3% $ OTAGO 17.2%

Southland and Hawke’s Bay. Overall, there were 1,520 more residential properties sold this August than last August which equates to an additional 49 properties sold a day which is pretty incredible,” says Norwell.

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