It’s true—the value of your home can double in ten years.

Average asking prices have more than doubled nationally and in 10 of 19 regions in the last decade, according to the latest data from realestate.co.nz. For homeowners who have not (theoretically) doubled their money, most have seen average asking prices in their regions get close, with more than 90% increases.

Vanessa Williams, spokesperson for realestate.co.nz says that property has long been considered a good investment, and the latest data has supported that theory.

“In 2012, the national average asking price for a home was less than half a million dollars at $447,040. We have seen this average increase steadily over the last ten years to reach just under $1 million in 2021.”

 

Nearly all regions see average asking prices more than (or close to) double in a decade.

Average asking prices in 10 of 19 regions have more than doubled in the last decade, while another six have almost doubled with increases of more than 90.0%

The biggest average asking price jumps were in Wairarapa (up 147.0% to $757,133), Manawatu/Whanganui (up 133.8% to $621,455) and Hawke’s Bay (up 128.3% to $791,012).

“Longstanding investment wisdom suggested that New Zealand homes double in value every year, and these stats suggest that that may be true – at least in most regions,” says Vanessa.

Gisborne, Coromandel, Waikato, and Bay of Plenty also saw impressive average asking price growth with increases of 123.4%, 121.9%, 117.5% and 117.2%, respectively.

Just three of New Zealand’s 19 regions have seen more modest growth of less than 90.0% since 2012, with Canterbury, Nelson and Bays and West Coast increasing 56.1%, 82,4% and 30.9%, respectively.

“Even in the regions where this growth hasn’t been quite as dramatic, property owners are likely still seeing decent returns,” says Vanessa. “It is interesting that the most significant growth has been in regional New Zealand, with Auckland just shy of doubling.”

 

Auckland prices are just below double – did last year’s COVID-19 restrictions affect price growth in the region?

Despite steady price growth every year since 2012, Auckland was just shy of doubling its numbers in the last decade with a 98.0% increase to the average asking price.

Vanessa says this could be due to the region’s intermittent lockdowns in 2021.

“All regions, including Auckland, saw their average asking price lift in 2021 compared to 2020. But Auckland was more affected by COVID-19 restrictions than most other regions last year, and this may have curbed the level of growth it might have seen otherwise.”

It seems that COVID-19 impacted how the industry operated. The uncertainty many faced could have also affected how much Aucklanders were willing to spend on property and what vendors could ask for.

“Compared to 2020, the region’s average asking price increased by 16.6% last year. However, sitting just below the national average increase of 17.7% and lagging the increases seen in many other regions, it could be that the pandemic played a part.”

Waikato and Northland, who also faced regional restrictions in 2021, saw annual average asking price increases mirror those seen in Auckland with 17.9% and 16.1%, respectively.

“If we think back to the last quarter of 2021, the mood of the nation certainly depended on what region you were in. Those of us in Auckland, and other areas where restrictions were in place, were probably feeling less optimistic than those where things were business as usual,” says Vanessa.

Most of the country was graced with a period of relative COVID-19-free normality last year, and this may have increased buyer confidence with year-on-year average asking prices up in 2021.

The most significant increases to average asking prices compared with the previous year were in Wairarapa (28.0%), Manawatu/Whanganui (25.7%), Central North Island (25.7%), and the Hawke’s Bay (25.0%).

 

Small towns saw the most significant property price increases of the decade

Auckland and our other main centres typically lead the charge with property trends, but in the last ten years, regional New Zealand small towns have seen the largest average asking price increases. With an increase of $361,441 or 282.1% in 10 years, mill-town Kawerau saw the most exponential average asking price growth.

But prices also more than doubled in 34 other New Zealand towns with the most significant increases in South Wairarapa (up 155.5%), Carterton (up 148.3%), Tararua (144.9%) and Central Hawkes Bay (143.5%).

“Auckland house prices have long been a hot topic, but it seems the real story here is what is happening in the regions.”

Except for Central Otago and Dunedin city, all the locations which have seen prices double are in the North Island.

“This is likely explained by population – more Kiwis call the North Island home than they do the south. And I think we are still seeing some impacts of the 2011 Christchurch earthquakes in the Canterbury region.”