Property prices ended the year with a bang, with the national average asking price jumping an eye-watering 13.4 percent year-on-year.
Trade Me Property figures for December show the national average asking price for residential property listings reached $767,050, an increase of $90,750 (13.4 percent) compared to December 2019.
Referring to the increase as "eye-watering", Trade Me Property spokesperson Logan Mudge said it's the first time in six years that every region had a record asking price.
"We saw property prices go from strength-to-strength throughout 2020 and in December, they finished the year with a bang."
Demand for property continues to drive prices higher. Nationwide in December, demand (measured by listing views) was up 15 percent year-on-year. Supply (listings) was down 9 percent.
"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," Mudge said.
Year-on-year, nine out of 15 regions experienced double-digit growth. The biggest jump was in Gisborne, where the average asking price increased 31.6 percent and the property price index (an indication of sale price), reached $506,800.
Auckland properties tip $1 million again, demand through the roof
The average asking price for Auckland properties grew 10.7 percent year-on-year. The Auckland property price index tipped the million-dollar mark for a third consecutive month, at $1,025,700.
For Auckland city, the price index was $1,217,250, making the city the most expensive Auckland district after North Shore City at $1,233,250.
With the number of views on Auckland property listings up 25 percent year-on-year, there weren't enough listings.
"While supply in Auckland climbed 8 percent, it couldn't keep up with demand, which was up by a staggering 25 percent year-on-year, Mudge said.
Wellington property prices increase almost 12 percent year-on-year
The average asking price for Wellington properties grew 12 percent year-on-year - higher than in Auckland.
The property price index for the Wellington region hit $763,400. Wellington city increased 11 percent year-on-year, to $866,550. Strong increases were also recorded in Masterton, up 19 percent to $540,900 and Upper Hutt, up 13 percent year-on-year to $691,050.
Similar to Auckland, demand for properties in the Wellington region was up 19 percent and supply was down 10 percent. The upward pressure on prices is expected to continue.
Other regions
Year-on-year increases in property asking prices were highest in Gisborne, followed by Manawatu/Whanganui, Southland and Otago.
Both listings and views of properties in the Marlborough and Nelson/Tasman regions dropped year-on-year, although the shortfall in listings was larger.
"Supply in Marlborough was down 42 percent year-on-year, while demand in the region was down by 20 percent, resulting in price increases.
"It was a similar story in Nelson, with demand down by 4 percent, while supply dropped 34 percent year-on-year," Mudge said.
Nationwide, the biggest year-on-year increases were recorded for one-to-two bedroom houses and five-plus bedroom houses. For each, the average asking price increased 15 percent year-on-year.
For the first time, the average asking price for units cracked the half-a-million mark, at $505,100.
Average asking prices are based on sellers' price indications when properties are listed on the Trade Me website. Measured over three months, the Property Price index is an indication of sale price.
