House prices in Wairoa grew at fastest rate in NZ during 2020

House prices in the Wairoa District, Hawke’s Bay, grew at the fastest rate of any district in New Zealand during 2020 with a 63.5% increase in median prices from $165,000 in 2019 to $269,750 in 2020, according to the Real Estate Institute of New Zealand’s (REINZ) latest analysis.

Wairoa was the only district in New Zealand that saw median prices increase in excess of 40%, with the second largest increase in median prices being seen in the Kaikoura District, where median prices increased 38.0% from $395,000 in 2019 to $545,000 in 2020. Close behind, was the Waitomo District, where median prices increased by 35.3% from $225,000 in 2019 to $304,500 in 2020.

Bindi Norwell, Chief Executive at REINZ says: “Wairoa District experienced an extraordinary level of median price growth last year, with house prices rising by 63.5% in just 12 months – that’s an increase of $104,750 in 12 months. This is the sort of growth level we would expect to see over a number of years, not just a number of months.

“What was really interesting about this analysis, was that of the top 10 fastest growing districts in New Zealand last year, all of them were in smaller regional areas rather than in the big cities, showing just how much pressure we’ve seen on house prices in the regions. It wasn’t until we got to number 22 on the list that we saw a district in a major city represented,” Norwell points out.

“The rate at which house prices have increased has put significant pressure on those wanting to enter the market, and Wairoa which topped the list, has seen many locals priced out of the market. The big questions most people are now asking are how much higher can prices go and how long will the rise last for? The reality is, that unless we can address the supply issues, we’re likely to see house prices rise in the short to medium term,” concludes Norwell.

Looking at the major centres, Auckland City topped the list with median price growth of 20.9% (from $951,000 to $1,150,000), followed by Lower Hutt City with growth of 18.9% (from $580,500 to $690,000) and Dunedin City with median price growth of 18.8% (from $459,250 to $545,500). Auckland City also took out the ‘title’ of being New Zealand’s most expensive district, whereas in 2019 North Shore City topped the table and Auckland City was in third place. Queenstown Lakes District moved from second place to third place in 2020.