PHOTO: Trade Me Property.
As spring arrives, the real estate market is displaying signs of rejuvenation, with gradual yet consistent month-on-month increases, as revealed by Trade Me’s Property Price Index for September.
In September, the national average property asking price experienced a 0.4 percent rise compared to August, following an identical 0.4 percent increase in August, reaching a level of $840,050.
Gavin Lloyd, Trade Me Property Sales Director, remarked, “Aotearoa’s real estate market is showing early signs of recovery as we transition into the warmer months. While prices have declined from the peak levels observed in 2021, they now appear to be stabilizing.”
He further noted, “For potential buyers considering entering the market, the current season may present an opportune moment, as demand tends to increase during the summer months. Although the national average asking price remains 6.2 percent lower than in September last year, the market’s trajectory suggests that well-financed buyers are in a favorable position to leverage these market conditions before prices make a significant ascent.”
A Resurgence in Wellington:
Prices in Wellington city are once again on the upswing, with the average asking price rising by 1.4 percent year-on-year to reach $894,900 in September. Gavin Lloyd commented, “Wellington witnessed some of the most significant price increases during the market’s peak, so it’s logical that after a period of correction, prices are rebounding.”
Across the entire region, there has been a modest resurgence, except for Porirua, which saw a 1.2 percent year-on-year decline in prices. In the Wellington region as a whole, prices remain 7.3 percent lower than at this time last year.
Gavin Lloyd also mentioned, “At this point, it’s too early to determine whether the general election will impact the housing market in Wellington, especially considering Wellington’s status as the hub of government and the public sector. However, it’s something to monitor over the coming months.”
Stability in Auckland:
In September, Auckland experienced a modest 0.2 percent increase in prices, indicating a stable market. However, the average asking price in Auckland remains above the million-dollar mark, with a current average of $1,134,600 for properties in the city.
Decline in High-Density Housing:
Across Auckland, Wellington, and Christchurch cities, prices have declined across the board for apartments, townhouses, and units. The sharpest drop was in Christchurch’s apartment market, where the average asking price fell by 16.2 percent to $652,700.
Gavin Lloyd noted, “There are many advantages to choosing a townhouse or apartment, particularly for younger and first-time buyers, so prospective buyers will likely be closely observing this trend in Christchurch.”
He added, “Apartment hunters in Auckland and Wellington may also find that the time is right, as the average asking price in Auckland has fallen by 7.5 percent and in Wellington by 10.2 percent.”
Reduction in Smaller Homes:
Smaller houses, especially those with 1-2 bedrooms in Auckland, have witnessed an 11 percent decline in price, while in Wellington, there has been a 4 percent year-on-year decrease.
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