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As markets across Australia started to claw back last year, property prices in New Zealand reached new milestones.
The latest figures revealed that all but two regions in New Zealand hit new records as they saw an increase in median sale prices.
Auckland remained flat at $NZ850,000, while the median West Coast price fell by 1.3 per cent to $NZ197,500.
“Areas of particular note when it came to house price increases were Gisborne, where median prices increased [by] 21.6 per cent from $320,000 in 2018 to $389,000 in 2019,” REINZ CEO Bindi Norwell said.
“This is the second consecutive year of strong growth in Gisborne, with prices having increased [by] 37.3 per cent from $283,250 in 2017.”
Ms Norwell put the price increase down to several factors, including the ongoing housing shortage, increased demand for quality properties, a decrease in listings, low-interest rates and a continued movement of Aucklanders to the region.
“The Auckland market has remained flat for around 2.5 years now; however, towards the end of 2019 we started seeing some potential signs of growth, so it will be interesting to see what 2020 will bring for the region,” she said.
The figures also showed 1.2 per cent fewer properties were sold in 2019.
Ms Norwell said the drop was not surprising.
“The decrease in sales in 2019 is likely due to a number of factors including, but not limited to, the decrease in supply, combined with increased legislation for investors and increased prices across the country,” she said.
“Significant regulatory changes, including the proposed capital gains tax, also made a significant impact on sales last year as investors considered their options as they waited for an outcome.”
