The New Zealand property market has seen consistent value gains across the country as the nation welcomed another 0.25% reduction in the Official Cash Rate (OCR) to revitalise the economy and reduce unemployment from 5.3%.
The OCR now stands at 2.25%, and it’s amazing to think the rate is less than half the 5.5% level of 18 months ago.
There are plenty of bright spots in the real estate market even if the national picture remains subdued.
We’re continuing to see a South Island-led property recovery, and there have been promising signals of recovery on the West Coast and Tauranga on the North Island, where prices registered a 1.3% increase to $1.09 million in the 12 weeks to the end of October.
Wellington has finally reversed its eight-month value decline with prices rising 0.3%. Its average house value is now $943,000, having dropped almost 5% previously.
Of the 922 suburbs covered by the OneRoof report, 339 recorded value growth over the 12-week period surveyed, and 469 are up year-on-year.
The program of OCR reductions by the Reserve Bank of New Zealand since July 2024 has been a key reason for these results.
One “unknown” is lurking in the background, however – Labour’s pledge to implement a Capital Gains Tax on investment properties and holiday homes if it’s returned to power.
Whether it gets elected, implements the policy and the final percentage of CGT are yet to be seen, of course.
Meanwhile, the OneRoof House Price Report for November says South Island property values have hit record highs, and Auckland’s Waiheke Island is now the nation’s most expensive suburb with an average property value of $3.62 million. Waiheke’s prices have jumped almost 13% in just 12 months. Previously, Herne Bay ($3.59m) was the most expensive suburb, according to OneRoof.
Another staggering average price is being achieved in Queenstown-Lakes, where values have risen 1.2% since July and now track at an average of $2.11 million.
Staying in the south, Invercargill has seen prices jump 2.2% in 12 weeks to register an average price of $550,000.
Another region doing well is the West Coast, which recorded a value rise of 1.7%, taking the average selling price to $490,000. The OneRoof report suggests this turnaround is due to locals seeking to upgrade in a soft market, plus an influx of investors and bargain hunters.
Bellwether market Auckland continues its stuttering recovery. Only 35 of its suburbs avoided the curse of falling prices.
However, predictions for 2026 are more optimistic. The recent Cotality / Westpac NZ report on First Home Buyer transactions looked to the future, saying: “We expect property sales and prices will both pick-up over 2026. However, with large amounts of unsold homes already sitting out there and more stock coming on to the market, house price growth is still likely to be gradual. We’re forecasting house prices to rise by around 5% over the coming year.”