Asking price for Whanganui properties increases by 12.2 per cent

Demand for housing is expected to remain solid in 2018.

Whanganui is one of the biggest movers in the average asking price for properties.

That's according to the latest Trade Me Property Price Index which shows 13 of 15 regions hit record average asking prices in December.

Whanganui's average asking price rose 12.2 per cent, or $35,700, from December 2016 to $327, 500, head of Trade Me Property Nigel Jeffries said.

"On the whole, the New Zealand property market ended 2017 with a bang," Mr Jeffries said.

"Gisborne and the West Coast were the only regions that didn't reach record asking prices in December."

The biggest rises in regional New Zealand were in Southland (13.5 per cent to $292,350), Otago (13.3 per cent to $525,300), Hawke's Bay (12.8 per cent to $510,550) and Whanganui.

The average asking price, broken down by house size, in the Whanganui region in December 2017 was:
- Large (five-plus bedrooms) $560,450
- Medium (three to four bedrooms) $332,050
- Small (one to two bedrooms) $223,700

Mr Jeffries predicted that the demand for housing would remain solid in 2018.

"The loosening of credit rules should allow more first time buyers get a foot on the property ladder which will result in a small increase in demand," he said.

"We'll also see less overseas buyers in the market in 2018 following the Government's plan to ban international investors. We expect this to have an impact on big ticket properties around the country that are often purchased by foreign buyers, but this won't have a significant impact on the national asking price.

"In preparation for the Healthy Homes Guarantee Act, some property investors may choose to sell up rather than face the additional costs required to comply, resulting in a potential increase in housing stock for owner occupiers."