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Summary
- The average asking prices of properties experienced a rise between 2011 and 2020, as per REINZ data.
- Property owners in Hamilton, Central Hawke’s Bay, Bay of Plenty, and Kawerau profited from the fancy value gains over the last 10 years.
- Property is still a sound investment for New Zealanders.
The average asking price rose in nearly every NZ district between 2011 and 2020, as per REINZ data. Property owners made some extravagant returns from the value gains witnessed in the last 10 years.
Vanessa Taylor, the property consultant spokesperson, stated that 10 years of evidence indicated that in the long term, in almost every area, the valuation of property in New Zealand was growing gradually. This indicates that for Kiwis, property is still a wise investment.
Hamilton city witnessed a 102% rise in average asking prices, from $378,470 in 2011 to $763,446 in 2020. The city could soon be known as the City of Healthy Prices instead of City of the Future, as per the Property Consultant. South Waikato and Otorohanga, also saw average asking prices to rise by 87% and 84%, respectively, since 2011.
Auckland City also performed powerfully over the decade, with average asking prices soaring 84% from $732,369 in 2011 to $1,348,769 in 2020. Waitakere saw the biggest asking price hike in Auckland, with average asking price surging by 99% in the last 10 years.
Asking prices also climbed across the Bay of Plenty over the decade with Kawerau leading the way within the region. The average asking price in Kawerau doubled to $351,413 by the end of 2020, up by more than 130% as compared to the price in 2011.
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Prices have also been on an upside run in Central Hawke’s Bay, where average asking prices have surged by 108% to $545,967 by the end of 2020. Prices also witnessed an increase in Central Otago, NZ’s favourite travel playground, hitting $795,287 in 2020, up 96% in 10 years.
House prices on an upside run in NZ
The house prices have been witnessing a relentless rise across the country.
Latest data of REINZ suggests that median house prices across NZ surged by 19.3% from $628,000 in December 2019 to a new record median price of $749,000 in December 2020, for the fourth month straight.
Further, the median house price of Auckland rose by 17.4% from $886,000 in 2019 at the same time to $1,040,000- the fifth straight month in which Auckland had a new record median house price.
DO READ: Westpac cuts mortgage rate amid housing boom
REINZ Chief Executive, Bindi Norwell, claims that the inventory levels have been reduced by half of those in December 2018, leaving buyers with limited choices. Further, with reduced interest rates as an add-on, there has been a subsequent surge in house prices.
Although the post-COVID power of the housing sector has played a crucial role in NZ’s economic growth, many analysts are deeply worried about the long-term effects.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
