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Wellington’s property is the most sought after in the country, according to the latest Trade Me property price index.
A wave of buyers arrived in the capital in August and demand for Wellington properties saw the largest annual percentage increase on record in August, after rising 34% year-on-year.
Trade Me Property spokesman Aaron Clancy said that nationally, Wellington saw the biggest increase in demand last month: “Spring is usually a busy period for the real estate market when the sun is shining, everything starts to look brighter. Eco-friendly and most properties look their best.
Monique Ford / Stuff
Wellington property demand saw the largest annual percentage increase on record in August, after rising 34% year-on-year in the Trade Me property price index.
“However, this year we saw the spring rush start much earlier than usual, indicating a very busy time for the housing market.”
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The cultural fabric of hipster and artist Mecca will undoubtedly be disrupted if the city’s artists and students can no longer afford to buy or rent there.
“Views are skyrocketing across the region. We saw big jumps in interest from prospective buyers across all districts, “Clancy said.
The Kāpiti coast saw a 68 percent increase in demand, followed by South Wairarapa with a 44 percent increase and the City of Wellington, which experienced a significant 40 percent increase in demand compared to August of the year. past.
In today’s highly competitive market, you have to be fast. The lists go faster than the tickets for one of the secret places of the Te Aro warehouse.
phil doyle / sunday star times
The national average sale price in New Zealand grew 9 percent year-on-year in August, to $ 701,750.
Properties for sale in Wellington are receiving a lot of interest within hours of being listed, Clancy said.
“The most popular listing in the country last month was a four-bedroom home in Southgate, Island Bay that was surveyed 553 times in its first two days at the site,” Clancy said.
The growing demand in the region is pushing prices ever higher.
In August, the median sale price of a property in the Wellington region rose 9% year-on-year to $ 689,500.
Stuff
Median home sales price on the Kāpiti coast reached $ 685,000 in August, a 16% increase from the same month last year, making it the third most expensive district behind Wellington City (799,100 dollars) and Porirua ($ 723,950).
Porirua and Lower Hutt have been a favorite with home buyers in recent years, but now buyers are looking a little further in their search for more profitable options.
The Kāpiti coast had an outstanding month in August. The median home sales price in the area reached $ 685,000, an increase of 16% from the same month last year, making it the third most expensive district behind Wellington City ($ 799,100) and Porirua. ($ 723,950).
“We have not seen Kāpiti rank among the top three most demanded and expensive districts in the Wellington region before. With prices rising in Wellington, Kiwis are looking for other options and weighing a longer journey in exchange for cheaper house prices, ”Clancy said.
“We also believe that some Kiwis have become used to working from home after closing. Obviously, this reduces the problems that many have with commuting and makes the districts further away from the CBD even more attractive. “
Virginia Woolf / Stuff
After Wellington, demand in the Nelson / Tasman region saw the second highest year-on-year increase in August. Tasman appeared to be driving this, with demand in the district increasing 42 percent compared to August last year.
Wellington wasn’t the only region to see prices rise in August. The national median sales price also grew 9 percent year-on-year to $ 701,750.
“This is the second month in a row that the national median sales price has shown such massive growth, and July also saw a 9 percent year-on-year increase. Before this, the last time we saw such a big increase was in 2017, “Clancy said.
The Reserve Bank forecast in August that unemployment would peak at 8.1 percent, causing property prices to fall 9 percent “from high to low.”
A sharp rise in unemployment beyond currently forecast levels could cause a dramatic collapse in house prices, according to its pessimistic model. However, that would require a “very severe scenario” in which unemployment reached 17.7 percent.
What people in the real estate industry are seeing on the ground is very different.
“Nationwide, demand for properties for sale increased 19 percent in August compared to last year, and all regions experienced year-on-year increases,” Clancy said.
The regions that saw the largest increases in demand were Wellington (34%), Nelson / Tasman (28%) and Manawatu / Whanganui (25%).
Manawatu / Whanganui and Bay of Plenty broke their own records, with regional average sales prices rising to $ 454,300 and $ 700,550 respectively.
“This is another indicator that in the post-blockade world, people are considering shopping in places that they previously thought were too isolated,” Clancy said.
Meanwhile, the median sales price in the Auckland region edged closer and closer to the million mark, hitting $ 948,800 in August.
Domestically, market supply, however, was down 3 percent year-on-year and most regions saw slower supply compared to August last year. This is partly due to aspiring movers who decide to stay because they can’t find houses to trade.
“Simply put, this is a great time to sell your home – demand is extremely high across the country and supply is not holding up, which means potential buyers must do their best,” Clancy said.
