NZ House Prices Drop in December, Auckland Leading Decline

Date Published: 18 January 2024

Key Facts

• The Real Estate Institute of NZ data shows house prices fell by 1.1% in December compared to November.
• The Auckland market led the decline, with prices down by 2.3% in December.
• Most major centres in New Zealand observed price drops, including Hamilton (-0.4%), Tauranga (-1.0%), Hastings (-2.2%), Wellington City (-0.8%), Nelson City (-0.3%), Christchurch (-1.1%), and Invercargill (-0.1%).
• Within Auckland, Central Auckland saw the biggest decline (-4.1%) followed by Franklin (-3.1%).
• The national median selling price in December was down by 1.9% to $779,830 compared to November.
• The REINZ recorded 5145 residential sales nationwide in December, a decrease from previous years.
• Despite a 14% increase compared to December last year, sales were down by 27% from December 2021, 46% from December 2020, and 21% from December 2019.

Article Summary

The latest data from the Real Estate Institute of NZ (REINZ) indicates a declining trend in house prices in December, ending the year on a low note. Auckland’s housing market led this trend, with prices dropping by 2.3%.

This downward movement in house prices was not isolated to Auckland, with key cities such as Hamilton, Tauranga, Hastings, Wellington City, Nelson City, Christchurch, and Invercargill also experiencing declines. Within Auckland itself, Central Auckland, which encompasses many of the city’s priciest suburbs, experienced the steepest decrease in prices.

On a national scale, the median selling price fell by 1.9%, while REINZ recorded fewer residential sales across the country in December compared to prior years. Although residential sales in December were up 14% compared to the same period last year, they were noticeably down when compared to the corresponding period in 2021, 2020, and 2019.

Given the generally slower real estate activity over the holiday period, the data from the coming weeks will provide a clearer picture of the market’s direction, especially as March traditionally sees the highest sales activity for the year.

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