Property prices remain firm as supply now outweighs demand

Tāmaki Makaurau - February shows property prices continuing to climb but now at a more moderate pace.

While sales activity is down, demand remains and stock on the market is up, according to the latest data and insights from the Real Estate Institute of New Zealand (REINZ).

Median prices for residential property across New Zealand increased 13.5 percent annually, from $780,000 in February 2021 to $885,000 in February 2022.

The median residential property price for New Zealand excluding Auckland increased 20.6 percent from $651,000 in February 2021 to $785,000 which is  a new record high.

Auckland’s median residential property price increased 8.2 percent annually, from $1,100,000 in February last year to $1,190,000 — though down 0.8 percent on January. The annual percentage increase is the lowest that we have seen in the region since June 2020.

In February, six regions achieved record medians, making this an above average February month, and there were 23 territorial authority median records. Regional records were achieved in:

• Canterbury —increased 28.6 percent annually from $560,000 to $720,000. Additionally, Christchurch City ($731,000), Selwyn District ($890,000), Timaru District ($508,000), and Waimakariri District ($757,000) reached record medians

• Taranaki —increased 27.9 percent annually from $520,000 to $665,000. Additionally, New Plymouth District ($730,000) reached a record median

• Southland —increased 24.6 percent annually from $390,000 to $486,000. Additionally, all three TAs in the region reached record medians: Gore District ($435,000), Invercargill City ($484,500), and Southland District ($525,000)

• Otago —increased 24.4 percent annually from $651,000 to $ $810,000. Additionally, Dunedin City ($685,000), Queenstown-Lakes district ($1,385,000), and Waitaki District ($505,000) reached record medians

• Gisborne —increased 20.2 percent annually from $595,000 to $715,000

• Bay of Plenty —13.2 percent annually from $848,250 to $960,000, a new record median high for the third month running. Additionally, Kawerau District ($493,000), Rotorua District ($720,000), Tauranga City ($1,100,000), and Western Bay of Plenty District ($1,050,000) reached record medians.

The regions with the lowest annual price growth were Marlborough and Auckland, at 6.5 percent and 8.2 percent respectively.