The average asking price for a house in New Zealand reached an all-time high of $846,900 last month, growing by 21% on the previous year, according to the latest Trade Me Property Price Index.

Trade Me Property Sales Director Gavin Lloyd says despite the Level 4 lockdown property prices charged ahead in August, marking the largest annual increase on record and 12 months of double-digit growth as prices increased $143,950 on the same month last year. 

“According to our latest Trade Me Jobs data, this increase is 2.2 times the national average salary, which is sitting at $64,939 as of Q2 (April-June) this year,” Gavin says. 

“As expected, the Covid-19 Alert Level restrictions had a significant impact on market supply and demand in August which comes as no surprise considering you cannot buy or sell a house under the Level 4 restrictions.”

Gavin says August saw a nation-wide 31% drop in the number of properties listed for sale onsite when compared with the same month in 2020. 

“Demand also dropped by 24% year-on-year last month, mirroring what we have seen in past lockdowns.”

For Central Otago Gavin told The Central App there has been an increase in asking price and a sharp drop in supply locally. 

“In August the average asking price for a property in Central Otago was $704,100, making a 10% increase when compared with the same month last year,” Gavin says. 

“As expected, the Covid-19 Alert Level restrictions had a significant impact on market supply and demand around the country in August and Central Otago was no exception

“Last month we saw a 9% drop in demand for properties in Central Otago when compared with August 2020, while supply was also down 49% year-on-year.”

Looking around the country, Gavin says record average asking prices were seen in every region. 

“The largest jumps were all seen in lower North Island regions of Manawatū/Whanganui (up 30 per cent to $589,350), Wellington (up 26 per cent to $867,050), and Hawke’s Bay (up 23 per cent to $737,050).”

Looking ahead, Gavin says the market was expected to make a swift recovery. 

“New Zealand’s property market has been running hot since we came out of lockdown in 2020, despite many predicting we would see it slow down. 

“As we’ve seen after previous lockdowns, we’re expecting listing numbers will make a quick recovery as restrictions are lifted and we move down alert levels.”

Gavin says nation-wide, small houses (1-2 bedrooms) and medium houses (3-4 bedrooms) saw their highest ever average asking price in August.

“Small houses saw the largest year-on-year percentage increase of 28.5 per cent.”

He says urban properties saw their highest ever asking price nationwide in August, reaching $712,950. 

“The average asking price for a townhouse saw the biggest increase, up 27 per cent on the same month last year and reaching an all-time high of $832,900.”