NZ property market update: Wellington and Dunedin shine

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Keeping up with the market is essential to your success as an investor, whether you're looking to buy new property, sell your current investment or improve your rental returns. 

To save you from spending hours researching and skimming property reports scattered around the internet, we've compiled everything you need to know about the movements in New Zealand's major property markets throughout 2018. Here's what you need to know. 

Tempted to list your property or diversify? Get an online valuation now to research property values

New listings are slowing down

The number of new listings decreased by 13.3% to 6,187 properties compared to December 2018. Wellington and Otago saw particularly large decreases in the number of new listings, falling by over 20% during the same period. 

Fewer new listings may place upward pressure on prices as 2019 progresses, particularly in the Otago and Wellington areas where supply is constrained and demand is high. Perhaps as a result of low supply, both these regions recorded all-time high average asking prices, which affected the average price for New Zealand. 

Asking prices are up in the regions

The average national asking price increased by 1.9% from $660,798 to $673,043 from December 2017 to December 2018. This steady increase suggests that the market is entering a period of stability, after years of huge fluctuations and record-breaking price increases. 

Despite that trend some regions experienced huge increases in average price during the month of December 2018 alone:

  • Gisborne's average asking price shot up by 6.9% $392,201. 
  • Coromandel's average price increased by 6.1% $709,570.
  • Hawkes Bay's average asking price increased by 5% $532,512. 
  • Northland's average asking price increased by 2.6% to $601,352. 
  • Wellington's average asking price increased by 1.1% to $647,490.
  • Otago's average asking price increased by 2.2 per cent to $418,143.

These movements show that capital gains can still be found throughout New Zealand if you're willing to do your research and consider alternative locations. 

Housing stock is low nationwide

Total housing stock decreased across most areas of the country from December 2017 to December 2018 indicating that buyer demand is outstripping supply. Otago (-33.3%) Wellington (-23%) and Gisborne (-48%) all experienced particularly severe drops in housing stock, whilst Auckland, Northland, the Hawkes Bay, Canterbury, Central Otago and the Bay of Plenty saw small increases. 

The drops in stock in Otago has left just 451 properties listed in the area over December, while Wellington had just 747. If the flow of new listings were to stop Otago and Wellington would run out of properties to sell in eight weeks and six weeks, respectively. This suggests that now is a great time to sell your property in these regions, as the current high demand is sure to help you fetch an attractive price.  

Get advice before you sell - regardless of the market

Wherever you're based and whatever the market is doing right now, it's important to get a clear idea of your property's worth before you consider selling. In fact, even if you're not selling knowing how much your property is worth can be very helpful. A property appraisal by a licensed real estate agent is a great way to start your market research. 

Get in touch with the team at your local Professionals Real Estate office to arrange a free, no obligation property appraisal for your investment today. 

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Topics: Market Trends
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