New Zealand housing market shows little sign of spring recovery

New Zealand’s residential property values declined by an average of 1.5% nationally during the three months ending in September, according to the latest QV House Price Index. While this represents a slight easing from the 1.9% quarterly decline reported previously, the market shows little sign of a broad-based recovery.

The average home in New Zealand is now valued at $892,580, marking a 1.9% decrease since the start of the year and a 0.9% drop compared to the same period last year. QV spokesperson Simon Petersen noted that buyers currently hold significant leverage due to high interest rates and the approaching election, which have contributed to downward pressure on home values.

Regional performance varied significantly. Queenstown saw the highest growth at 3.1%, while Tauranga and Invercargill remained relatively static. Conversely, values fell in Gisborne by 3.2%, in Wellington and Whangārei by 3%, and in Auckland by 2.5%. Growth was observed across Southland and most of Otago, highlighting a regional divide in market conditions.