If you are a would-be house hunter wondering exactly when you missed your shot to get into the Auckland property market this time around, Trade Me’s property division reckons it has the answer: March 2014.
The website’s data shows that since that time, the average asking price in the city has increased more than $250,000, or 45.6 per cent.
“These last three years have been a watershed for the Auckland property market, the price increases are mind-boggling and it looks like there are more record highs around the corner, despite the recent easing,” said head of Trade Me Property Nigel Jeffries.
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“At the top end of the market we are seeing more asking prices edge over the $2 million mark. The most expensive suburb is Herne Bay with a median asking price of nearly $2.3m, up 19 per cent in the past year. The three other suburbs with average asking prices of over $2m are Dairy Flat, Omaha and Remuera.”
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In the three years since March 2014, every suburb in Auckland has had an average asking price of more than $500,000. Before that, there were 30 that were still below that mark.
The top 10 fastest rising suburbs since March 2014 include three on Waiheke Island, plus Omaha and Newmarket.
Jeffries said the Auckland market’s average asking price was edging closer to $1m and had jumped 72.6 per cent over the past five years.
“Based on the current rate of growth we could well see Auckland break through the $1m milestone within the next six months – just six years after it broke the $500,000 mark back in September 2011.”
The site’s latest property index shows that prices in other parts of the country are still rising strongly – 12 out of the 15 regions it covers reported increases in asking prices in March this year.
The average asking price for the typical property outside Auckland rose 1 per cent in March to $482,000, the eighth consecutive record high.
The lower North Island and top of the South Island were particularly strong, with Nelson/Tasman up 15.1 per cent to $529,700 and Wellington up 12.9 per cent to hit another record high of $541,400.
Wellington’s neighbouring regions of Taranaki, Manawatu and Marlborough are not far behind, with rises of between 7 and 10 per cent on March 2016.
Auckland’s three ‘halo’ regions continued their strong growth, outpacing the City of Sails again. Northland led the way with a 19.2 per cent increase to $516,700, Waikato was up 17.1 per cent to $511,450 and the Bay of Plenty was near the $600,000 mark and up 14.2 per cent over the past year.
Three regions had minor dips in average asking prices: Hawke’s Bay (down 2.7 per cent), West Coast (down 0.5 per cent) and Canterbury (down 0.3 per cent).
But Christchurch was struggling to gain traction.
Jeffries said Christchurch’s average asking price was just below $500,000, down 1.3 per cent on last year.
“Christchurch property prices are still feeling the impact of the earthquake and rebuild. A key factor influencing the market is the sell-off of ‘as is, where-is’ property which is pushing down the average asking price.”