REINZ’s House Price Index (HPI) has revealed staggering figures.

The price changes for the year to October have revealed the truly eyewatering growth in house prices, despite Covid-19 lockdowns and closed borders.

Palmerston North has led the way with a 48% price growth over the 12 months with Papakura, a South Auckland suburb, at 40%, Christchurch 39.7% and Franklin, also in South Auckland, at 38%.

The Manawatu region in which Palmerston North is located, along with Whanganui, has had the HPI’s top spot for year-on-year movement of all regions for six months in a row – reaching a record index level of 5.306 – a 42.6% increase.

Canterbury, at 38%, and Waikato, at 34.1%, had their largest year-on-year HPI increases since records began.

The average annual price increase for property across the country is 29.9% year-on-year to 4,206 – reaching a new high. This is the 15th consecutive month a new high has been reached. Nowhere had price growth under 20%.

The HPI for New Zealand, excluding Auckland, shows an increase in house values of 33.3% over the October year, also to a new index high. Auckland’s house values increased 25.7% year-on-year to 4,149.

Last month, Northland, Southland, and Gisborne/Hawke’s Bay were the only regions not to reach new highs on the index. For several months in a row Southland has had the lowest or second-lowest year-on-year movement of all regions.

Low interest rates, banks’ willingness to lend and low levels of inventory creating a demand/supply imbalance have boosted house prices. The total number of properties for sale dropped 16.1% last month to 15,217, down from 18,141 in October last year.