Demand for Canterbury properties rising as house prices double in some parts of NZ

Photo: RNZ / Nate McKinnon
Photo: RNZ / Nate McKinnon
In the last 10 years, the value of property has doubled in some areas of New Zealand.

Figures released by realestate.co.nz show between 2011 and 2020, the asking prices for some properties went up by more than 100 per cent.

Meanwhile, Canterbury had a big increase in the number of people searching for homes in the region, up by 32.2 per cent in 2020 compared to 2019, new annual data from realestate.co.nz shows.

The biggest price increase was in the small Bay of Plenty district of Kawerau, where the average asking price went up 132 per cent. Strong rises were also seen in Central Hawke's Bay, Hamilton, Waitakere, and Central Otago.

The average asking price in Canterbury rose from $520,154 in 2019 to $544,718 in 2020. However, the number of new listings fell by 9.3 per cent from 15,681 in 2019 to 14,215 in 2020.

Demand from users searching for property at realestate.co.nz rose in every region in 2020, with the most significant increases seen in the South Island. Searches were up 46.1 per cent in Nelson & Bays, 38.9 per cent on the West Coast and 37.6 per cent in Marlborough.

Realestate.co.nz chief executive Sarah Wood told Morning Report over the first five years of the past decade house prices were relatively flat but increases were seen in the second half.

"It always comes down to supply and demand issues," she said.

"There is always opportunity in every market, it's about being really prepared, doing your research and looking at what those opportunities are in the area that you're looking at, what sort of home you're looking to buy..."

She said it is hard to predict future prices but New Zealand needs to look at increasing affordable housing supply.

Asking prices and demand across NZ

Canterbury

The average asking price in Canterbury increased from $520,154 in 2019 to $544,718 in 2020. But the number of new listings fell by 9.3 per cent from 15,681 in 2019 to 14,215 in 2020.

Waikato

Average asking prices in Hamilton City increased by 102 per cent, from $378,470 in 2011 to $763,446 in 2020. South Waikato has increased by 87 per cent and Otorohanga by 84 per cent.

Auckland

Waitākere saw the biggest increase, with prices rising 99 per cent over the last 10 years from $465,305 in 2011 to $926,889 by the end of 2020. In Auckland City asking prices rising 84 per cent from $732,369 in 2011 to $1,348,769 in 2020. Manukau rose 77 per cent and North Shore 74 per cent.

Bay of Plenty

The largest increase in asking prices throughout the country is Kawerau, which saw a 132 per cent increase over the last 10 years. The average asking price in 2011 in Kawerau was around the $151,000 mark. By the end of 2020, it reached $351,413. The highest asking price in Bay of Plenty is in Western Bay of Plenty, reaching $992,948 in 2020.

Hawke's Bay

In Central Hawke's Bay, asking prices were $283,646 higher in 2020 than 10 years ago - a 108 per cent increase. Napier asking prices were up 85 per cent and in Hastings they went up 69 per cent.

Otago

The average asking price in Central Otago hit $795,287 in 2020, an increase of 96 per cent over a 10-year period. In Queenstown, the prices rose by 83 per cent and Wanaka saw a 76 per cent increase.

*Where a display price is not supplied the search price has been used. Source: Realestate.co.nz
*Where a display price is not supplied the search price has been used. Source: Realestate.co.nz

 

 

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