AUS
NZ
UK
CA
USA
IND
.jpg)
Summary
- Low-interest rates, removal of loan to value restrictions and successful elimination of virus have surged house prices amid COVID-19.
- Demand for property has surged by 16% in October as compared to the same month last year as Kiwis stepped out to buy their first home and make an investment.
- The average asking price for a house in the Auckland region saw annual growth of 9.4% compared to a year before to $1,003,300.
- RBNZ has forecasted an annual housing price growth of 7.6% and 7.9% in the year to March 2021 and June 2021, respectively.
Lockdown is giving New Zealanders more time to think about their living situation and look for a potential property.
As per the latest Trade Me Property data, Kiwis are climbing up the property ladder and are achieving new peaks. Property prices have hit record levels in October, with the average asking price increasing 10% on the year prior, before setting a new record at $736,100.
Wellington struck a new high of $736,100, with the number of property listing views soaring 21% but supply dropping 16%.
Logan Mudge, the real-estate website’s spokesperson stated that nationwide demand was up by 16% in October compared to the same month in 2019 as many New Zealanders were seeking to invest and buy their first home.
He also stated that property was in high demand in Wellington, and it was an apt time to sell with supply low, demand increased and record prices. Aucklanders seem to be in a battle for accommodation following 2 lockdowns in 2020, with many Kiwis reconsidering their style of living and considering moving in larger houses.
ALSO READ: Reserve Bank tools to impact the NZ housing market
The national average asking price rose by 10.5% YOY to a new record of $742,950 in October, and every region recorded a price rise compared to last year. 11 out of 15 areas in the nation achieved record property prices in October.
Auckland average price crosses $1 million mark
The average asking price for a house in the Auckland region has surged 9.4% on the year prior, to $1,003,000, as per the real estate website. In October, large Auckland houses with 5 or more bedrooms witnessed the most significant jump in asking prices of all house sizes, up by 13% to $1,534,350.
Mudge noted that there is a robust demand for properties in the Auckland region with listing views up by an astonishing 22% compared to the year before. He added that record low-interest rates and increasing need for more space seem to be fuelling the economy in the region.
Bindi Norwell REINZ Chief Executive stated that October would be known as the record month in housing history. She stated that though crossing the $1 million mark is a significant achievement, it raises serious queries about forthcoming affordability for Auckland residents looking to take the first step on the property ladder.
RBNZ revise housing forecasts
Reserve Bank has stated that it will restore loan to value restrictions if it thinks that house prices are rising too quickly.
ALSO READ: Is the NZ housing market set to thrive?
In the latest Monetary policy statement, RBNZ has revised its house price forecasts with the forecast of annual price growth of 7.6% in the year to March 2021 and further 7.9% in the year to June 2021.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
