Property prices experienced the “hottest month” on record in December, with record highs in every New Zealand region.
This is according to the latest Trade Me Property Price Index.
Bay of Plenty properties saw a 12 per cent increase in their average asking price when compared with December 2019.
Trade Me Property spokesperson Logan Mudge says the property market ended the year with a bang, with record average asking prices across the board.
"This is the first time we have seen the average asking price in every single region reach a new record in the six years we have reported on the market. It’s fair to say the New Zealand property market has never been hotter."
He says the national average asking price also had a record-breaking month, increasing by an "eye-watering" 13 per cent in December when compared with the same period in 2019 to $767,050.
"We saw property prices go from strength to strength throughout 2020 and in December they finished the year with a bang.
"Despite the lockdown, 2020 saw the national average asking price climb incrementally throughout the year, challenging some predictions that the market would take a huge hit as a result of the pandemic,” he says.
“This reached a climax at the end of 2020, with double-digit percentage increases every month since September."
Logan says nationwide, demand was up 15 per cent on December 2019 while supply was down 9 per cent.
"It’s the same story we’ve seen for the last 12 months, demand is up and supply is down and as long as this picture remains prices will continue to skyrocket."
Regions all see prices grow
Logan says December saw some “incredible price growth” across the country, with nine of New Zealand’s fifteen regions seeing strong double digit increases
The biggest price growth was seen in Gisborne (up 32 per cent), Manawatu/Whanganui (up 22 per cent), Southland (up 15 per cent), and Otago (up 13 per cent).
He says Bay of Plenty, West Coast, Taranaki, and Wellington all saw a 12 per cent increase in their average asking price when compared with December 2019.
"Marlborough and Nelson/Tasman had an interesting month as the only regions that saw a large drop in both supply and demand when compared with the same month in 2019.”
Auckland prices up 11 per cent year-on-year
The average asking price in the Auckland region kept climbing beyond $1m for the third consecutive month in December.
"The average asking price in the region reached $1,025,700 in December up 11 per cent when compared with the same month in 2019.
"While supply in Auckland climbed 8 per cent, it couldn’t keep up with demand, which was up by a staggering 25 per cent year-on-year."
In Auckland City, Logan says the average asking price saw even stronger growth, up 13 per cent year-on-year to $1,217,250.
"This made Auckland City the second most expensive district in the region."
He says the most expensive district in the region was North Shore City at $1,233,250, with Waiheke ($1,204,800) in third place.