REINZ figures show the average price of a house in New Zealand reached $300,000 for the first time in November, driven by demand in the main population centres of Auckland, Wellington and Christchurch. The average NZ house price has risen 53 percent in three years.
Commenting on the figures, REINZ President Mr Howard Morley said the latest increase showed a steadying but very healthy property market. “The Reserve Bank has been trying to dampen demand in the property market and after nine increases in the OCR since January 2004 the rate of increase in median house prices appears to have been tempered with a 15.38% increase over the last 12 months.
“The fact is that demand for housing is strong both in the major centres and in the provinces and prices are simply a reflection of that. We believe rising construction costs rather than speculative expectations are one of the key drivers of rising property prices. People make the comparison between building a new home and buying an existing one and they see the value in existing property. High employment levels are also giving home owners some comfort to upgrade or add on to their existing home.”
House Price Changes
| Region | Median Price November |
Change since October |
| Northland | $253,500 | down 1.0 % |
| Auckland Region | $390,000 | up 2.6 % |
| Waikato / Bay of Plenty / Gisborne | $275,000 | up 0.4 % |
| Hawke’s Bay’s | $250,000 | up 6.0 % |
| Manawatu/Wanganui | $187,000 | up 1.9 % |
| Taranaki | $205,000 | down 2.8 % |
| Wellington Region | $315,250 | up 3.5 % |
| Nelson / Marlborough | $265,500 | down 3.0 % |
| Canterbury / Westland | $270,000 | up 3.8 % |
| Central Otago Lakes | $400,000 | down 4.0 % |
| Otago | $215,000 | 0.0 % |
| Southland | $129,000 | up 10.8 % |