Slowdown in Major Urban Property Market Growth, Auckland Values Decline: Q1 Report

Date Published: 10 April 2024

Key Facts

• The average value of New Zealand homes increased by 2.2% to $924,734 over the first quarter of this year.
• The national average dwelling value is currently 1.9% higher compared to last year, but still 13.1% lower than the market peak in late 2021.
• Queenstown observed the greatest quarterly value growth at 2.7%, followed by Wellington (2%) and Christchurch (1.5%).
• Auckland’s average dwelling value declined slightly by -0.2% over the three months to March.
• Other areas experiencing decrease in average values were Whangarei (-0.2%), Hamilton (-0.1%), Rotorua (-2.7%) and Hastings (-1.4%).
• The current housing market condition is defined as “flat” by QV Operations Manager James Wilson.

Article Summary

As per Quotable Value (QV), New Zealand’s residential property landscape saw a gentle flux in value during the first quarter of this year. The overall average home value grew by 2.2% to $924,734 in these three months. Despite this rise, the current national average dwelling value remains 13.1% lower than the market peak in late 2021.

In the major urban regions, Queenstown led the race with a 2.7% value rise, followed by Wellington and Christchurch, reported at 2% and 1.5% respectively. However, it’s noticeable that there’s a slowing trend in these areas, with lesser growth recorded in the three months leading to March in comparison to the prior three months. Auckland is one of the regions where there has been a decrease in the average dwelling value, albeit a small one of -0.2%.

Similar declines are also observed in the regions of Whangarei, Hamilton, Rotorua, and Hastings. QV Operations Manager James Wilson described the present market as “flat.” While there remains a significant number of properties on the market, providing ample choices to prospective buyers, interest rates and credit constraints continue to pose challenges.

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