Median prices for residential property across New Zealand increased by 23.8 percent year-on-year to 925,000 New Zealand dollars (628,630 U.S. dollars) last month, hitting a new record high, showed data from the Real Estate Institute of New Zealand.
The median property price in Auckland increased 26.2 percent annually to 1,300,000 New Zealand dollars (883,480 dollars), another record median.
There was a monthly increase in median prices of 3.7 percent across New Zealand and 3.2 percent for New Zealand excluding Auckland.
Jen Baird, chief executive of the Real Estate Institute of New Zealand, said the market has returned to business as near-usual across the board stimulated by demand as the country prepared to leave COVID-19 lockdown behind, but also cautioned that headwinds are gathering.
"Government measures to moderate the New Zealand property market, the Reserve Bank's interest rate increases and growing challenges around financing as banks tighten their lending criteria are aligning," he said, adding that the growth trend will continue with a more moderate trajectory given the strength of the market.
New Zealand's house prices hit new record highs amid the pandemic, while low interest rates boosted demand for housing and credit. As the housing demand kept high, the supply touched low. In some regions, inventory levels were at their lowest point ever.
New Zealand has moved into a simplified COVID-19 protection framework, or "traffic light" system, which has three levels: green, orange and red. The largest city Auckland and parts of the North Island are at red settings, while the rest of the country is at orange settings.
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