Confidence returns to market as prices increase across NZ

The Hawke’s Bay region emerged as the frontrunner in property price growth in October, with average asking prices surging 4.1 per cent to $771,600.

“This was most evident in Hastings, where prices skyrocketed by 7 per cent to $788,300. Napier, on the other hand, maintained its position as the most expensive area in the region, with average prices rising 2.6 per cent to $821,350,” said Mr Lloyd.

While the average asking price has increased month-on-month, the market is still shy of the record highs witnessed in 2022.

“Even with a year-on-year decline of 8.1 per cent, Auckland remains the most expensive region in the motu, with average asking price still over a million dollars at $1,054,800,” Mr Lloyd added.

“In contrast, the West Coast, despite experiencing a 7.3 per cent increase to $469,900, remains the most affordable option for homebuyers. It’s also the only region to defy the national trend, having consistently recorded year-on-year increases for the past five months.”

The supply of properties for sale dropped by 6 per cent year-on-year across Aotearoa, with Wellington recording the largest decline of 26 per cent compared to October last year.

As the new government takes shape, Mr Lloyd anticipates that upcoming policy changes could incentivise more Kiwi to put their homes on the market.

“With interest rates on the rise, some property owners who bought in recent years may be considering selling, particularly if the bright line test is reduced," said Mr. Lloyd.

“National's campaign promise to lower the capital gains tax for properties held for two years or less, coupled with ACT and NZ First's outright opposition to the tax, suggests that the property market might see a significant shakeup now the new cabinet is finalised,” added Mr Lloyd.