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NZ property market picks up following election jitters
9 Nov

With the dust settled over New Zealand’s general election, the country’s property market is beginning to show signs of life.

That’s according to the latest Trade Me Property Price Index. Founded in 1999 by local entrepreneur Sam Morgan, Trade Me is New Zealand’s largest Internet auction website and as such, acts as a good indicator of how the property market is progressing.

New Zealand’s property market has had a lacklustre year with sales prices rising by just 3.9% in the year to October, its slowest growth rate in five years. This was compounded by uncertainty over recent general elections.

In fact, the average asking price stalled in September, whilst the number of houses on sale dropping to low levels that month. Usually by this time of year we expect to see the property market in full swing, but with the election in play it's pushed everything back," said Trade Me Property head Nigel Jeffries.

However, this looks set to change with the country’s property market showing signs of a late spring bloom. In fact, lying in stark contrast to September, October’s figures showed a 30% increase on the amount of listed properties.

Furthermore, nationwide asking prices were up by 2.7 to $623,700 in October compared to the previous month. “We're starting to see some of the movement we'd normally expect in this peak buying and selling season”, Jeffries said.

"It's still too early to say if our new Labour-led Government has had any impact on property prices but we are seeing signs that the market is starting to revive from those election jitters," he added.

The country’s most populated city, Auckland, saw its average asking price rise 2.2% on the previous year to $916,900. New Zealand’s best performing region was Hawke’s Bay, with average asking prices rising by 17.1% to $487,300 year-on-year.

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