Residential property prices in New Zealand have hit a new high according to the latest index from thr Real Estate Institute of New Zealand (REINZ).
The average national value of residential property in the country as a whole rose by 1.8 per cent year-on-year in March to $560,000.
However, if the major city of Auckland, where prices actually fell, is taken out of the equation, the average residential property price rose by 6.2 per cent to a new high of $460,000.
Auckland property prices fell by 2.2 per cent year-on-year to $880,000 in March, though it must be remembered that March 2017 hit a record peak of $900,000 which the Auckland property market has since been trying to live up to. Month-on-month prices in Auckland actually rose by 2.9 per cent.
Three regions of New Zealand achieved a record new high in property prices in March.
Gisborne saw an annual rise of 17.9 per cent to reach a new high of $330,000, while the Hawke’s Bay region enjoyed annual growth of 11.7 per cent to $445,000. Wellington also reached a record high, rising 10 per cent to $583,000.
Other regions also enjoyed strong residential property price growth, with Manawatu/Wanganui up 12.3 per cent to $292,000 and Otago up 11.1 per cent to $405,500.
Bindi Norwell, REINZ chief executive, commented: ‘March was a very strong month from a price perspective with record prices achieved for New Zealand excluding Auckland, Gisborne, the Hawke’s Bay and Wellington. Looking at the whole country, median house prices increased in 13 out of 16 regions.’
The REINZ index also showed that property sales across New Zealand fell by 9.9 per cent year-on-year in March, which was again partly blamed on the fact that the previous March has seen the highest monthly volume in 2017. A lack of available property for sale in many regions was also noted.
It seems that the residential property market in New Zealand remains strong and of interest to overseas property investors as a safe bet for investment.