Property Market Warm-up in NZ’s Hottest and Coldest Towns: Rising Interest in Rangiora and Lake Tekapo Homes

Date Published: 6 January 2024

Key Facts

• New Zealand’s real estate market is warming up after over a year of coolness.
• Rangiora, New Zealand’s hottest town, sees increasing interest from North Island home buyers, with average property value at $706,000.
• Increasing activity is observed at open homes in Rangiora, but first home buyers still find financing a challenge at current rates.
• Lake Tekapo, recognized as New Zealand’s coldest town, benefits from rebounding tourist numbers as its housing market is largely driven by holiday homeowners and short-term rental investors.
• Owing to the increasing cost of new-builds, both Rangiora and Lake Tekapo are experiencing a shift towards interested buyers for finished homes.
• Mackenzie District Council has commissioned a $20,000 investigation into the area’s growing housing crisis, prompted by population growth, migration, and tourism.

Article Summary

The real estate market in New Zealand is warming up with towns like Rangiora and Lake Tekapo seeing increasing interest from buyers. The average property value in Rangiora, known as New Zealand’s hottest town, was $706,000 in December, making it attractive to price-conscious buyers wanting to move from the North Island. However, first home buyers still find it challenging to secure finance at current rates.

Lake Tekapo, identified as New Zealand’s coldest town, is benefitting from a boost in tourism numbers. Investors are primarily interested in holiday homeownership and the short-term rental market, which can generate between $70,000 to $90,000 per annum as tourism rebounds back to pre-Covid levels. Properties on sale are mostly finished homes due to increasing construction costs discouraging buyers from purchasing sections.

There are issues, however, as the Mackenzie District Council has been forced to commission a $20,000 investigation due to a growing housing crisis in the area, driven by population growth through migration and tourism. Additionally, local businesses are reportedly buying staff accommodation due to the difficulty in finding suitable property. Nevertheless, the market seems promising with the town’s average property value growing 1% over the previous three months to $1.074m and up 13% on pre-Covid values.

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