New Zealand Property Market Sees Muted Start in 2024 Despite Rising Values in Majority of Suburbs

Date Published: 31 January 2024

Key Facts

• Property values are rising in nine out of 10 suburbs according to OneRoof figures.
• Biggest quarterly lifts recorded in Arrowtown (+8.3%), Mataura (+8.2%) and Whitford (+8%).
• Suburbs in Queenstown-Lakes saw the strongest growth, while first-time buyer activity boosted suburbs in Southland, West Coast and Canterbury.
• Over 40% of suburbs with 20+ settled sales saw year-on-year value uplifts.
• High-profile suburbs Remuera and Omaha experienced a fall in property values over the quarter, 4.1% and 2.6% respectively.
• New Zealand’s average property value grew just 0.9% ($9000) in the three months to the end of November to $973,000.
• The highest quarterly rise was in the West Coast, a 4.7% increase to $424,000.
• Waikato and Gisborne marginally fell over the quarter by 0.3%.
• Auckland’s average property value up just 0.1% to $1.324m over the holiday period.
• Queenstown-Lakes leads with a quarter-on-quarter value growth of 4% and 6.3% year-on-year.
• Mortgages registered to investors increased from 22.4% to 23.6% over the last quarter.

Article Summary

The New Zealand housing market has begun 2024 with a muted start, despite property values rising in nine out of ten suburbs. OneRoof figures indicate 90% of suburbs nationwide experienced a quarter-on-quarter increase, led by Arrowtown, Mataura, and Whitford. Despite the overall rise, high-profile suburbs such as Remuera and Omaha saw a drop in values.

Queenstown-Lakes experienced the most robust growth. Suburbs in Southland, West Coast and Canterbury also enjoyed growth due to first-home buyer activity. Over 40% of suburbs with 20+ settled sales saw year-on-year value increases, marking a significant turnaround in the market. Conversely, the average property value rose a mere 0.9% in the three months to November, with the highest increase of 4.7% in the West Coast.

Auckland’s average property value saw a small increase of 0.1% to $1.324m over the holiday period. Property growth was supported by first-home buyer price points in Franklin and Manukau. The leading major metro, Queenstown-Lakes, saw a value growth of 4% quarter-on-quarter and 6.3% year-on-year. The heat in Christchurch cooled off slightly but still saw a 4.8% increase year-on-year.

New data also showed a slight increase in mortgages registered to property investors from 22.4% to 23.6% in the last quarter, while those registered to first-home buyers slightly fell. Helen O’Sullivan, Valocity’s global CEO of real estate, expressed that the impending debt-to-income ratios would likely constrain house price growth in the next upswing but should not significantly impact current prices or activity levels.

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