Part of December Monthly Property report from REINZ

18 January 2018
Strong end to 2017, with house prices up 5.8% in December says REINZ
Median house prices across New Zealand rose by 5.8% year-on-year to $550,000 – up from $520,000
in December 2016 and median prices for New Zealand excluding Auckland increased by 6.6% to
$450,000 (up from $422,000 in December 16) according to the latest data from the Real Estate
Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New
Zealand.
Auckland’s median house price increased 1.8% in December to $870,000 up from $855,000
compared to December 2016.
This price growth is consistent with what we have observed with the REINZ HPI.
13 out of 16 regions saw prices increase in December, with three of those regions experiencing
record prices:
• Waikato – up 11.7% year-on-year to $525,000 (a $35,000 increase since November 17 and a
$55,000 increase since December 16)
• Bay of Plenty – up 20.4% year-on-year to $598,000 (a $23,000 increase since November 17
and a $101,500 increase since December 16)
• Wellington – up 4.7% to $560,000 (a $10,000 increase since November 17 and a $25,000
increase since December 16).
Three regions saw a price decrease year-on-year – Marlborough (down 2.1% to $372,000), West
Coast (down 1.6% to $185,000) and Canterbury (down 0.7% to $439,000).
Bindi Norwell, Chief Executive at REINZ says: “Median house prices across New Zealand have
increased 5.8% in December, representing an increase of $30,000 since the same time last year. This
increase defies the predictions of many commentators who 12 or 13 months ago were adamant that
house prices would fall in 2017.
“While the increase will be welcome news to those looking to sell their property, for those first
home buyers this will not have been the Christmas present they were hoping for. Although there is
some hope as the rate of price increases has decreased significantly compared to previous years
meaning that if the trend continues, there is more of a chance that those saving for a house deposit
can keep up with increasing property prices,” continues Norwell.
“When looking at the Auckland picture, this is the first time that all seven districts have had a
median price of in excess of $700,000 highlighting how expensive the city is becoming. Additionally,
North Shore City has reached a record median price of $1,113,000 – the nearest the price has been
to this point previously was $1,105,000 in November 2016,” points out Norwell.

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