WELLINGTON, Sept. 22 (Xinhua) — According to the most recent Trade Me Property Price Index, issued on Thursday, the number of properties for sale in New Zealand continued to skyrocket in August, rising a record 76 percent compared to August of the previous year.
Director of Property Sales at Trade Me, Gavin Lloyd, stated that the national property supply has increased annually for the past nine consecutive months. “While last month’s surge was somewhat attributable to the statewide lockdown in August 2021, these increases have been rising all year, and the current supply is substantially above pre-pandemic levels.”
“Last month represented the third consecutive month in which the number of listings increased by more than 50 percent year-over-year,” he said.
Lloyd stated that while every region’s supply increased by at least a third in August compared to the same month last year, there were a few standouts. The number of houses for sale in Waikato reached an all-time high last month, more than tripling in comparison to August 2021.
The number of houses for sale in Hawke’s Bay, Nelson/Tasman, Bay of Plenty, and Manawatu/Whanganui more than doubled in August compared to last year. Lloyd stated that while demand for real estate was also on the rise, it was insufficient to match the substantial increases in supply. The Hawke’s Bay, Wellington, and Nelson/Tasman regions saw the most significant increase in the number of property listings viewed in August.
Lloyd stated that prices may fall more before summer. “We are only now entering the busiest season of the market, and with so many possibilities available to purchasers, the next several months will be rather eventful. If these supply peaks continue to exceed demand, we anticipate more price declines.”
The national average asking price continued its downward trend for the sixth consecutive month in August, down 1% from July to $899,200. In Wellington (-4%), Nelson/Tasman (-3%), Taranaki (-3%), and West Coast (all -3%), average asking prices fell by the most month-to-month. “Prices are declining as a direct result of sky-high supply and relatively little demand, relieving buyer pressure and compelling sellers to reduce their price expectations.”
In August, the national average asking price for a home increased by 6% compared to the same month last year, the smallest year-over-year gain in more than two years. Last month, the average asking price in the Wellington region fell below $900,000 for the first time since September 2021.
