All eyes are on the capital as a barometer of gains in the property market, with Wellington recording a sharp 12.9% year-on-year increase in average asking prices.
New data from realestate.co.nz shows an increase in the average asking price for a home in six of New Zealand’s 19 regions.
Wellington now asks almost $95,000 more on average when compared to May 2024, the second highest increase in the country.
Realestate.co.nz chief executive Sarah Wood said Wellington was worth watching closely after months of subdued figures.
“This lift could be early evidence of buyer confidence returning to the capital. A jump like this gives vendors reason to feel optimistic.”
This rise comes despite a 32.1% drop in new listings in the region, suggesting low supply could be squeezing prices upward.
Something needed to ‘move the dial’
Something significant to “really move the dial” was needed in the property market, Wood said.
“Last week’s OCR drop wasn’t that, but if interest rates drop and we see more investors in the market, we’re likely to see a greater appetite for buying.”
Nationally, the average asking price rose just 0.8% year-on-year.
Other regions with significant annual price increases included Taranaki, up 13.1% to $756,271; Otago, up 7.4% to $645,788; and Southland, which hit an all-time high at $564,291, up 6.5%.
However, nine regions recorded a year-on-year decline, including the West Coast, down 9.8% to $494,855; Gisborne, down 6.3% to $634,604; and the Central Otago Lakes District, down 6% to $1,382,741.
“We’ve had over two years of price stability and there’s no sign of real change just yet,” said Wood,
“We continue to remain in a holding pattern, waiting for either demand to rise or economic indicators to shift before we see meaningful movement.”
Wood said the next few months would “certainly be interesting” due to the OCR drop, the quieter winter period, and the deadline for Healthy Homes.
“It’s certainly exciting to see movement in the capital, especially because, as we know, big markets turn first.”
