Aotearoa house prices hit new highs – West Coast the place to live?

Otautahi - Median prices for residential property across New Zealand increased by 24.3 percent from $665,000 in March 2020 to $826,300 in March 2021 a new record high for the country.

Additionally, 12 out of 16 regions reached record median prices and so did 32 districts, according to the latest data from the Real Estate Institute of New Zealand, source of the most complete and accurate real estate data in New Zealand.

Median house prices for New Zealand excluding Auckland increased by 23.6 percent from $550,000 in March last year to $680,000, a new record high for the country.

Auckland’s median house price increased by 18.5 percent from $945,000 in March 2020 to $1,120,000 in March 2021 – a new record for Auckland.

House prices on the West Coast are so affordable, even though they jumped 36.4 percent from $220,000 in March 2020 to $300,000, March this year.

In addition to Auckland, 11 other regions reached record median prices. They were:

• Northland: with a 26.8 percent increase from $560,000 in March 2020 to $710,000 in March 2021. Additionally, Whangarei ($723,000) reached a new record median price

• Waikato: with a 22.7 percent increase from $595,000 in March 2020 to $730,000 in March 2021. Additionally, Hamilton City ($780,000), Hauraki District ($590,000), Matamata/Piako District ($680,000), Waikato District ($720,000) and Waipa District ($801,000) all reached record median highs

• Gisborne: with a 56.9 percent increase from $401,618 in March 2020 to $630,000 in March 2021

• Hawke’s Bay: with a 30.5 percent increase from $545,000 in March 2020 to $711,000 in March 2021

• Manawatu/Wanganui: with a 31.9 percent increase from $430,000 in March 2020 to $567,000 in March 2021 – the ninth record median price in a row. Additionally, Horowhenua District ($575,000), Manawatu District ($565,000), Rangitikei District ($440,000) and Whanganui District ($521,000) all reached record median highs

• Tasman: with a 19.6 percent increase from $670,000 in March 2020 to $801,000 in March 2021

• Marlborough: with a 27.7 percent increase from $520,000 in March 2020 to $664,000 in March 2021

• West Coast: with a 36.4 percent increase from $220,000 in March 2020 to $300,000 in March 2021 – the second record median price in a row. Additionally, Grey District ($289,250) and Westland District ($405,000) were record median highs

• Canterbury: with a 17.8 percent increase from $488,000 in March 2020 to $575,000 in March 2021. Additionally, Christchurch City ($600,000), Timaru District ($430,000) and Waimakariri District ($565,000) all reached record median highs in March

• Otago: with a 30.8 percent increase from $535,000 in March 2020 to $700,000 in March 2021. Additionally, Central Otago District ($770,000), Clutha District ($400,000), Dunedin City ($650,000) and Queenstown-Lakes District ($1,185,000) all reach record median highs

• Southland: with a 12.2 percent increase from $370,000 in March 2020 to $415,000 in March 2021. Additionally, Invercargill District reached a record median high of $430,000.

The Manawatu/Wanganui region has now had 9 record median prices in a row, 10 of the last 12 months were record or equal record prices for the Waikato region, 7 of the last 8 months were records for the Canterbury region and the Auckland region has hit another record median price.

These sorts of price rises are unsustainable and show just why New Zealand continues to top the league tables of most unaffordable nations in international studies.