Median house prices in New Zealand increased by 1.9% in April 2018 to $550,000 but prices fell slightly in Auckland by 0.6% to $850,000, the latest monthly index shows.
Prices increased in 14 out of 16 regions across New Zealand and three regions achieved record prices, according to the figures from the Real Estate Institute of New Zealand.
Manawatu/Wanganui recorded a record price of $305,000, up 19.4%, Nelson a rise of 15.8% to $550,000 and Otago a rise of 19.5% to $460,000. Other regions that saw strong increases in price during April were Southland, up 19% to $250,000, Gisborne up 14.3% to $320,000, and Hawke’s Bay up 12% to $431,250.
The index also shows that prices increased year on year in 11 out of 12 regions which REINZ chief executive Bindi Norwell indicates the continued strength of the property market. The only region not to experience an annual increase was Canterbury with a fall of 0.3%.
The Gisborne/Hawke’s Bay region again had the highest annual growth rate at 14.7%, followed by Manawatu/Wanganui up 12.7% and Southland up 11.4%.
‘Prices increased in 14 out of 16 regions across New Zealand, showing the continued demand for good properties particularly as listings continue to remain low in many parts of the country,’ said Norwell.
She explained that the small decreases in Auckland and Canterbury were very small and actually suggest that these markets have stabilised. ‘Looking at the price breakdown for the Auckland markets explains why the region experienced a decrease in median price,’ Norwell pointed out.
‘The number of properties sold for between $250,000 to $750,000 increased and the number of properties sold in the $750,000 and above brackets fell, thereby bringing the overall median price down. It’s positive to see more sales in the more affordable price brackets,’ she said.
She also explained that a commitment from the Government for additional funding of $234 million to Housing New Zealand to build 6,400 more state and social homes over the next four years will make a significant difference to housing affordability around the country.
‘Home ownership is at its lowest level in 60 years and many Kiwis will never be able to achieve their dream of owning their own home. But these homes need to be built as quickly as possible to help first home buyers and those on low incomes to be able to get a foot on the property ladder,’ Norwell added.
