Property prices fall for six months in a row

The national average asking price for a property has dropped for six consecutive months for the first time on record, according to the latest Trade Me Property Price Index.

In September, Trade Me Property Sales Director Gavin Lloyd said the national average asking price was $896,200. “When compared with the month prior, this marks a drop of $3,000 and puts New Zealand’s average property price at its lowest since October 2021.”

“While September’s month-on-month price drop was smaller than what we saw in previous months, the consistent decline says a lot about what’s happening in the market.”

Looking around the country, Mr Lloyd said the Marlborough, Otago, and Taranaki regions saw the largest drops in September, with their average asking price all down 2 per cent month-on-month. “It’s remarkable to think the Bay of Plenty’s average asking price was sitting at over $1,000,000 in February, considering it’s now at $937,300.”

While most regions saw prices fall in September, Mr Lloyd said there were some exceptions. “The Nelson/Tasman region saw a 2 per cent increase in average asking price, while the Waikato, Hawke’s Bay, Southland and Canterbury regions all saw a 1 per cent increase in their average asking price when compared with the month prior.”

Going forward, Mr Lloyd said prices may continue to fall. ”Current market conditions are going to make for an interesting Summer period. We have already seen month-on-month price drops slowing down in September, which may continue into the next few months as seasonal demand picks up.”

Looking back to this time last year, Mr Lloyd said the national average asking price increased by 5 per cent year-on-year in September, the smallest annual increase since April 2020.

Supply skyrockets in September

Along with price drops, property supply also had an outstanding month in September. “When compared with the same month last year, the number of properties listed for sale onsite jumped by 67 per cent.

“In fact, last month we saw more properties for sale than in any other September on record.”

Mr Lloyd said supply almost doubled in the Nelson/Tasman region (+96%) when compared with the same month last year, while the Waikato (+90%) Northland (+83%) and Bay of Plenty (+82%) regions were not far behind.

Looking at demand, Mr Lloyd said nationwide listing views fell by 1 per cent in September. “The Auckland region flouted the trend, with demand jumping by 13 per cent year-on-year last month.”

West Coast (+6%), Wellington (+4%), and the Bay of Plenty (+3%) were the only other regions to see demand increase in September when compared with the same month last year.

Wellington prices fall for the first time

The average asking price in the Wellington region saw its first year-on-year drop on record in September, falling by 3 per cent to $865,350.

In the Wellington City district, Mr Lloyd said the average asking price fell below $1,000,000 for the first time in a year, to $976,300. “Wellington City was still the most expensive district in the region, followed by Porirua ($967,700) and Kāpiti Coast ($895,150).”

The Wellington region’s most popular property in September was an eight-bedroom, six-bathroom country estate style property located in Greytown. “The house was watchlisted 488 times in its first seven days onsite.”

Auckland prices remain above $1,000,000

In the Auckland region, the average asking price in September was $1,124,100, making it the only region in the country over $1,000,000.

The most expensive district in the Auckland region last month was Waiheke Island ($1,466,450) followed by North Shore City ($1,346,050) and Rodney ($1,302,600)

Last month’s most popular Auckland property was the home of former Prime Minister John Key. “The seven-bedroom, six-bathroom house on Saint Stephens Avenue, Parnell was watchlisted a whopping 1,735 times in its first seven days onsite.”