NZ Housing Market Steadies As Sentiment Cautiously Lifts

The rate of decline in the housing market has slowed again, with national residential property values largely holding steady throughout May.

Our latest QV House Price Index shows nationwide values have inched up just 0.1% to a new national average of $913,772 in the May quarter. That figure is 1.1% lower than the same time last year and 14.1% below the market’s peak in late 2021.

Across New Zealand’s main urban areas just Whangarei (3.2%), Hastings (1.1%), Nelson (1.1%), and Christchurch (1.3%), recorded average home value growth in excess of 1% throughout the three months to the end of May 2025. Hamilton (0.5%), and Tauranga (0.2%) values rose slightly. While Auckland (-0.5%), Wellington (-1.7%), Palmerston North (-0.9%), and Dunedin (-0.8%), recorded losses.

QV operations manager James Wilson said, “The housing market is still softening, but doing so at a slowing pace with signs of tentative confidence beginning to surface.”

“With interest rates easing and more owner-occupiers re-entering the market — particularly in the middle and upper-middle brackets — we’re observing a return to activity in the main urban centres. This has helped stabilise national values and reduced the number of areas experiencing declines.”

“Investor activity is also picking up, especially in lower-value and regional markets. This, combined with steady demand from first-home buyers, is starting to generate subtle competitive pressures. However, high stock levels and cautious vendor expectations are still keeping price growth in check.”

“Ongoing global uncertainty, including from US trade tariffs and escalating conflicts, along with local concerns about job security are still contributing to a climate of caution,” Mr Wilson said.

“While we don’t expect a dramatic winter upswing, it’s likely we’ll see growing buyer engagement as confidence continues to build.”

Northland

The Northland market has seen an upswing in the second quarter of the year with values up 2.2% and the average value across the region is $738,936. Values are now 0.9% lower than they were in May last year, and 10.0% below the previous peak of late 2021.

In the three months to May, the Far North rose 1.7% and the average home there is now worth $705,192. In Whangarei, the average value is $738,441 after a quarterly lift of 3.2%. While in Kaipara, it is $834,628 after a slight 0.1% lift over the quarter.

Auckland

The Auckland property market remains subdued and while overall momentum remains weak, there are signs of divergence emerging at the local level with some areas seeing growth. The average home across the Super City is now worth $1,240,029, 2.2% less than a year ago and 19.1% lower than the market’s peak in late 2021.

In the May quarter values increased in Papakura (1.3%) and in the local council areas previously known as Auckland City (0.4%). Other parts of the super city saw values continue to decline over the quarter; Manukau (-1.2%); North Shore (-1.0%), Franklin (-0.9%), and Waitakere (-0.1%).

Local QV Registered Valuer, Hugh Robson said, “Many Auckland suburbs continue to have high levels of housing stock on the market and agents report low attendance numbers at open homes and auctions.”

“Despite this, there is increased activity from first time buyers, due to falling interest rates and mainly in medium to lower value areas and higher value suburbs are seeing less activity than lower value suburbs.”

“New multi-unit developments continue to be built (with many developments just starting) and there’s a notable increase in investment properties on the market. The Auckland rental market appears to have stabilised with rents not rising or falling rather ‘flat-lining’ now.”

Waikato

The latest QV House Price Index shows Hamilton’s average home is now worth $791,909, with values bucking recent downward trend, rising 0.5% over the past three months. Values are now 0.5% higher than this time last year and 13.9% lower than the previous peak of late 2021.

QV Property consultant Marshall Wu said, “Hamilton experienced a modest lift in home values during May and these gains coincide with stabilising listings levels, though a significant volume of unsold inventory continues to linger on the market.”

“While easing mortgage rates, improving sentiment, and income growth are all supportive factors, they are being met with strong headwinds,” he said.

“Persisting affordability challenges, rising unemployment, and softer population growth are all contributing to a more cautious outlook for would be buyers.”

The Waikato region has also turned a corner, up 0.6% in the May quarter and home values are 0.5% higher than the same time last year. The average home value across the region is now $817,249.

Hauraki values jumped 5.1% over the May quarter and are 6.1% year on year; while Thames/Coromandel rose 1.5% and Waikato District was up 0.5% over the past three months.

Waitomo District also continues to see values jump with a quarterly increase of 8.6%; Ōtorohanga and Waipa districts, also recorded gains of 4.6% and 0.8% respectively. While South Waikato values decreased 3.5% over the quarter.

Bay of Plenty

Home values rose in Tauranga by 0.2% over the past three months. The city’s average home value is now $1,002,458, which is 0.8% lower than at the same time last year.

The Bay of Plenty region saw a 0.1% quarterly decrease to a new average value of $886,186 which is 0.5% lower than a year ago. Gisborne saw quarterly growth of 0.5%, Kawerau District rose 0.3%. In contrast, Opotiki District saw the largest drop in the region, with a 3-month decline of 5.7%, while Whakatane was also down 1.5%, and Rotorua held relatively steady dipping just 0.1%.

Hawkes Bay

Napier City home values rose 0.4% over the past three months to a new average value of $760,109 which is 0.7% lower year on year. Hastings values rose 1.1% over the past three months to a new average of $768,689 which is 3.1% lower than the same time last year.

Wairoa has seen one of the highest increases in the country rising 7.4% in the three months to May and 10.8% year on year to a new average value of $447,895. While, Central Hawke’s Bay experienced the greatest downward trend in the region, dropping 5.1% over the quarter and 7.2% year on year with a new average value of $532,315.

Taranaki

Home values in New Plymouth are down 0.3% in the May quarter and are 0.4% higher year on year. The average home there is now worth $723,486. Meanwhile, values shot up by 7.0% in South Taranaki over the quarter to May to a new average value of $447,255; while Stratford edged up 0.3% to $476,773.

QV Local Registered Valuer, Danny Grace said, “The residential property market in New Plymouth is more stable with improved levels of activity over the recent months, more interest from buyers, and agents are feeling more confident.”

“The lower end of the market is more active, with less interest in the higher priced properties. Values in Stratford and South Taranaki are also more stable, but activity in New Plymouth is stronger,” he said.

Palmerston North

Home values in Palmerston North dipped 0.9% over the May quarter and homes there are now worth on average $632,309, which is 1.3% lower than this time last year.

Local QV Registered Valuer Olivia Betts said, “The market remains steady, with minimal price fluctuations. February and March saw a notable increase in new listings, giving buyers more options and greater leverage. This boost in inventory was accompanied by a rise in sales activity—an expected trend ahead of the quieter autumn and winter months."

“A clear divide continues to emerge between different property types. Homes with outdated features are proving harder to sell and tend to stay on the market longer. In contrast, renovated properties with modern amenities are in higher demand, particularly among buyers seeking convenience and updated living spaces,” she said.

“This preference is especially strong among first-home buyers targeting homes in the mid-$500K range, ideally built or refurbished within the last 20 years.”

“Overall, while the market is experiencing a slight softening, it remains balanced. A typical seasonal slowdown is anticipated through winter, with increased activity expected to return in spring.”

Wairarapa

Home values are rising in some areas and continuing to decrease in others in the Wairarapa region.

Our latest QV House Price Index shows Masterton’s average home value has reduced by 1.3% this quarter to $571,778. Carterton’s average home rose in value by 2.1% to $634,158 and home values in South Wairarapa reduced by 1.2% to a new average of $747,407. The average home across the region is now worth $623,103, 2.3% less than the same time last year.

Wellington

Residential property values have continued their downward trend across Wellington this quarter. The region’s average home value decreased by 1.4% to $829,215, which is 4.9% lower year on year and 25.4% below the previous peak of late 2021. All the areas saw values decrease over the May quarter: Wellington City fell 1.8%; Hutt City was down 2.3%; Porirua dropped 1.4%; and Upper Hutt dipped slightly by 0.2%.

QV Senior Consultant, David Cornford said, “Values have tracked backwards slightly over the last few months in the Wellington region and the market continues to be relatively soft as we head into the winter months.”

“Despite interest rates now being significantly lower, these rate drops have not correlated to an increase in property values and it’s likely the region will require economic conditions to improve before we see a strengthening market,” he said.

“There continues to be ample properties on the market giving buyers, plenty of choice. First home buyers are active, while there is a lack of activity from investors.”

Nelson-Tasman-Marlborough

Values in Nelson are bucking the downward trend seen in many other main centres, recording quarterly growth of 1.1% and 3.2% year on year. The average home in the city is now worth $802,332.

Tasman values also rose 1.0% over the quarter to a new average of $823,131, while Marlborough posted a slight quarterly increase of 0.8%, with homes there on average worth $700,892.

QV Nelson/Marlborough manager Craig Russell said in Nelson and Tasman the majority of activity is in the $500,000-$800,000 price bracket. “Often there are multiple offers and the majority of purchasers in this price bracket are first home buyers.”

“A number of investors are selling properties which they’ve held as rentals for a number of years which is likely due to these investors wanting to free up capital, or obtain better returns elsewhere, after a period of no capital growth,” he said.

“The number of properties on the market remains elevated as we enter the seasonal downturn in activity. Section sales are slow, particularly in hillside suburbs as high building costs restrict buyers.”

West Coast

Housing figures continue to fluctuate from month to month and quarter to quarter on the West Coast.

Our QV House Price Index for May shows the Westcoast region saw values rise 3.9% over the past three months to a new average value of $433,345 which is a 4.6% increase year on year and 18.8% higher than the nationwide market peak of late 2021.

Average home values in Buller were up 10.5% over the past three months to $384,407, while Westland also rose 4.3% to $474,046; while values in Grey dipped 0.2% to $446,520.

Canterbury

Christchurch’s average home values rose 1.3% in the May quarter to $779,866. This is an annual increase of 1.2% values are now 1.8% higher than the previous nationwide peak of late 2021.

Hurunui values saw a quarterly increase of 0.7% to a new average of $645,936, which is 1.8% lower year on year. While Waimakariri recorded a modest increase of 0.2% to an average value of $720,376 which is 0.7% higher than in May last year.

Local QV registered valuer, Olivia Brownie said, “The property market in the Canterbury Region remains stable, with buyers showing commitment to purchases and sellers pricing realistically. We continue to see a small consistent positive market movement across the region as a whole.”

“Whilst the rate of new listings coming onto the market is cooling down, there are still strong sales with ample listings and stable prices benefiting both parties with time and choice,” she said.

“More recently the most active buyer groups have been mortgaged owners and investors as lending and borrowing conditions have eased.”

Dunedin

Our QV House Price Index for May 2025 shows values have dipped (-0.8%) over the past quarter and (-0.9%) year on year. The average home is now worth $640,125 which is 11.5% lower than the peak of late 2021.

Local QV Registered Valuer Baylan Connolly said, “The townhouse market continues to see the trend away from investors to owner occupiers with the majority of townhouse developments being focused in the higher valuer areas in the city including Belleknowes, Roslyn, Maori Hill, and the fringes of Andersons Bay.”

“The South Dunedin Future initiative, a joint effort between the Dunedin City Council (DCC) and Otago Regional Council (ORC), recently released a detailed hazard assessment and a long-term strategy outlining multibillion-dollar adaptation options,” he said.

“While developers acknowledged this work, they emphasised the need for concrete action to restore market confidence. The rising cost of insurance, especially in flood-prone areas, is a major consideration for buyers, investors, and developers. Higher insurance premiums are discouraging development in high-risk areas and increasing demand for properties in elevated suburbs.”

“The gradual reinstatement of interest deductibility is improving investor sentiment, though it has not yet led to a full resurgence in investment demand.”

Queenstown

Our QV House Price Index for May shows the average value in the Queenstown Lakes District remains the highest in Aotearoa, New Zealand despite a downward trend emerging in the market there. Values dipped 0.3% over the past three months and 0.7% year on year. However, the average value of $1,815,797 is 13.5% higher than the nationwide market peak of late 2021 and remains well above all other regions in the country.

QV Local Registered Valuer Greg Simpson said the local property market has remained active and generally steady over the past 12 months, despite broader national uncertainty.

"Sales volumes are increasing alongside inventory levels, and average residential values have held firm in both Queenstown and Central Otago. However, market conditions remain sensitive to economic headwinds, with tighter credit conditions and ongoing caution among buyers," Mr Simpson said.

The surrounding areas are seeing positive quarterly value growth including Central Otago up (2.4%) and Clutha up (3.1%); and Waitaki up (1.5%).

Southland

Invercargill values rose 1.3% over the past three months to an average value of $506,888, which is 4.2% higher year on year, and 3.9% higher than the previous peak.

While in Gore, values increased 8.8% over the quarter to $439,670 which is 4.2% higher than a year ago. And in Southland values dipped 0.7% over the past three months to $533,255 but are 5.0% higher than a year ago.

QV Registered Valuer Andrew Ronald said, “There is strong demand from first home buyers in the $350,000 to $500,000 bracket in the Invercargill market. We also seeing an increasing interest from investors and recent rent rises have now stabilised. Meanwhile, there’s been limited demand from buyers in the upper end of the market in price range above $1,000,000.”

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