5 Feb 2021

House prices in Wairoa grew the fastest in 2020

1:34 pm on 5 February 2021

House prices in Wairoa, Hawke's Bay, grew faster than any district in the country last year.

Marine Parade roundabout, Wairoa

House prices in Wairoa district grew the fastest in the country last year Photo: RNZ / Tom Kitchin

It was the only district that saw median prices increase by more than 40 percent, jumping 63.5 percent to $269,750 in 2020 from $165,000 the year before, according to aReal Estate Institute of New Zealand (REINZ) analysis.

The second largest increase was in Kaikōura district where median prices grew 38 percent, from $395,000 in 2019 to $545,000 in 2020.

Waitomo District, with a 35.3 percent increase to $304,500, was in third spot.

REINZ chief executive Bindi Norwell said this sort of growth would be expected over a number of years, not just in months.

All top 10 fastest growing districts in the country last year were smaller regions.

"The rate at which house prices have increased has put significant pressure on those wanting to enter the market, and in places like Wairoa which topped the list, has seen many locals priced out of the market," Norwell said.

"The big questions most people are now asking are how much higher can prices go and how long will the rise last for. The reality is, that unless we can address the supply issues, we're likely to see house prices rise in the short to medium term."

Buller district in the West Coast had the lowest median house price at $230,000.

For the major centres, Auckland City topped the list with median price growth of 20.9 percent to $1,150,000, followed by Lower Hutt City (18.9 percent to $690,000) and Dunedin City (18.8 percent to $545,500).

Auckland City became New Zealand's most expensive district, a change from 2019 when North Shore City topped the table and Auckland City was in third place. Queenstown Lakes District moved from second place to third place in 2020.

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