Auckland property prices have experienced their biggest year-on-year decrease in five years with the average asking price falling 1.9 percent from 2018 to $901,650.
Head of Trade Me Property Nigel Jeffries said while this decline may seem relatively small, it shows that after years of incredible growth the Auckland property market has hit a slump.
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"Property prices in the region have been flat for a number of months but now it seems the Auckland property bubble is losing air and prices are on the decline," he says.
"With the government's restrictions on foreign buyers and new regulations for landlords, the Auckland property market is seeing less overseas buyers and investors which is cooling property prices."
Some of Auckland's popular inner-city suburbs experienced a dip in property prices in May, with Parnell prices falling 14.8 percent, Ponsonby dipping 4.1 percent and Remuera dropping 7.8 percent.
"When we look at the types of properties that are selling in the Super City, apartments are the new favourite property type for Aucklanders with a 19 percent year-on-year increase in the number of apartments sold in May," Jeffries says.
"This surge of interest in apartment living has pushed the asking price up 11 percent year-on-year to $680,350."
Wellington rises, others fall
Jeffries says the national average asking price fell to 1.5 percent on April to $663,800 in May. Demand has also begun to cool down, falling 1 percent on last year.
The regions were a mixed bag in May with three regions hitting new records and large dips in others.
"The Waikato, Wellington and Otago regions hit record high average asking prices, while the average asking price in Auckland, Taranaki, and Marlborough fell against May last year," he says.
"Otago's property market went gangbusters in May, shooting up 11.3 percent to reach a record asking price at $591,750. Demand in the region has jumped 22 percent on last year."
Another area to see a massive spike was Wellington, which took off in mid-2016 and has showed no sign of slowing since.
"Property prices in the capital have continued their record-breaking streak after the average asking price rose 11.6 per cent year-on-year to $658,250 - an annual increase of $68,000," Jeffries says.
"We'll be watching the Wellington market closely over the next few months. Typically we expect prices to cool during winter but every sign we're seeing is pointing towards this record-breaking run continuing."