The average price of a house in Auckland is now $1 million, up 16.3 percent in just a year, new data shows.
Nationwide, the median is now $725,000 - up 19.8 percent - according to figures from the Real Estate Institute of New Zealand (REINZ).
Prices in the country's biggest city jumped 4.7 percent between September and October alone.
"October 2020 will go down in housing history as being the point in time when Auckland region's median house price hit the million-dollar mark for the first time - something no one anticipated or expected just six months after the entire country came out of lockdown," said REINZ chief executive Bindi Norwell.
"While this is a significant milestone, it raises serious questions around future affordability for Auckland residents wanting to get a foot on the property ladder.
"It also highlights just how important it is that legislation, such as the Resource Management Act, is re-addressed quickly by the current government so it is fit for purpose to help support more houses being built at speed and at scale."
Nine other regions also hit record highs. They are:
- Gisborne with a 34.1 percent increase from $425,000 in October last year to $570,000 this October
- Marlborough with a 26.8 percent increase from $445,500 to $565,000
- Otago with a 22.7 percent increase from $532,000 to $652,500
- Wellington with a 20.8 percent increase from $650,000 to $785,000
- Manawatu/Wanganui with a 17.5 percent increase from $400,000 to $470,000
- Northland with a 16.5 percent increase from $515,000 to $600,000
- Bay of Plenty with a 16.2 percent increase from $620,000 to $720,500
- Waikato with a 15.9 percent increase from $565,000 to $655,000
- Canterbury with a 9.7 percent increase from $465,000 to $510,000.
"Low interest and mortgage rates, the diversion of spend on overseas travel to property, expats returning home, the removal of loan-to-value restrictions and a fiercely competitive market due to the lack of listings has been contributing to price rises over the past few months," said Norwell.
"Given the price rises we've seen over the past few months, we wouldn't be surprised if the Reserve Bank goes ahead with its proposal to reinstate LVRs before the 12-month period is up - particularly for investors," points out Norwell."
"Low interest and mortgage rates, the diversion of spend on overseas travel to property, expats returning home, the removal of loan-to-value restrictions and a fiercely competitive market due to the lack of listings has been contributing to price rises over the past few months," said Norwell.
"Given the price rises we've seen over the past few months, we wouldn't be surprised if the Reserve Bank goes ahead with its proposal to reinstate LVRs before the 12-month period is up - particularly for investors," points out Norwell.
There were 8830 properties sold in October - up 25 percent on last year, and the highest in any calendar month since May 2016. Auckland sales were up 50 percent to 3140, the most sold in any October since 2003.
Norwell says the rises are being driven by a lack of supply. There were 18.7 percent fewer properties on the market in October than a year ago. Houses are selling quicker than usual too - just over four weeks on average, down from about five weeks.
Fewer cheap homes are selling too - just 22.3 percent cost less than $500,000 in October, compared to 34.2 percent last year, and 30.4 percent cost between $500,000 and $750,000, down from 33.3 percent.
A quarter of all properties in New Zealand now cost more than $1 million.
