Property prices reach record high - Trade Me

File photo / Janna Dixon

New Zealand property prices have reached a new record high, according to Trade Me Property.

Trade Me property data showed the average asking price across all property types in the three months to October was $494,750.

The previous asking price record was $491,050 seen in March 2014.

Head of Trade Me Property Nigel Jeffries said the surge in the property price index showed the market had a spring its step after a subdued winter.

"The October data shows the first significant increase in sellers' price expectations in six months as the market regains confidence. Up until now it has been slow to spark into life, potentially held back by the September election."

The property price index measures trends in asking prices for residential property listings added to Trade Me Property by real estate agents and private sellers over the previous three months.

"Having seen prices edge sideways for the past six months, the market has signalled a confident rise. This represents an overall increase of 23.9 per cent since October 2009," Mr Jeffries said.

Mr Jeffries said there was a significant rise in the price expectation for 3 and 4-bedroom homes as the average price passed the $500,000 level for the first time.

"We've seen meaty price increases for larger houses over the past year and the price expectation for medium-sized houses has taken off in recent months with 11.9 per cent growth in October as compared to a year ago.

"The average asking price for these properties in Auckland and Christchurch also reached a new record level at $688,700 and $480,700 respectively."

Smaller properties also grew in average asking price, up 13 per cent year-on-year.

Mr Jeffries said the strength of pricing in the apartment sector stood out.

"Driven by the volume of apartments in Auckland, the average asking price for apartments broke through the $400,000 barrier for the first time and landed at $405,000, up a very strong 14.6 per cent on a year ago.

"This shows the strong appeal of compact living as both an investment option and a first step onto the property ladder."

Thirteen regions across the country showed an increase in average asking prices.

"Taranaki and Gisborne again led the growth in average asking price, while there was sustained growth in Canterbury which was up 13 per cent. Hawke's Bay and Manawatu/Wanganui also experienced double-digit growth. At the other end of the spectrum, Waikato and West Coast were the only regions where average asking prices contracted, down 2 per cent and 6 per cent respectively," Mr Jeffries said.

In the major metropolitan areas, Auckland's asking price increase dropped down a gear from 10.2 per cent to 9.4 per cent, while Wellington remained steady at 6.9 per cent growth. Mr Jeffries said the data from the country's two major urban centres reflected a "gradual easing" from stronger increases over the past year.