Most are in two major cities
An article published by Nick Goodall (pictured), head of research at CoreLogic NZ, shows where most of New Zealand’s $1 million+ housing market can be found.
According to the report, most of the sales take place in well-known hotspots, like Tāmaki Makaurau Auckland, Wellington (Te Whanganui-a-Tara), Christchurch (Ōtautahi), and Tāhuna Queenstown. Auckland accounts for 52% of the sales, with a large portion concentrated in Auckland City and Northshore, both home to the city’s most desirable suburbs. Ōtautahi Christchurch accounts for about 7% of sales, while Tāhuna Queenstown makes up around 4%. Queenstown’s share looks small, but it represents a large portion when considering its relatively low number of dwellings.
Goodall also said that other cities like Wellington City (4%), Hamilton, and Tauranga contribute to the $1 million+ club. Smaller areas such as Waipo, Waikato, Thames-Coromandel, Western Bay of Plenty, and Taupō also see significant numbers of these high-value sales driven by lifestyle properties and holiday homes in the region.
He also noted interesting trends if the suburb-level data is analyzed using estimated median values - 337 out of 1,191 suburbs in New Zealand have a median property value exceeding $1 million, accounting for 28% of the country’s suburbs. Auckland has 167 suburbs where the median home value is $1 million+, making up 70% of its suburbs.
However, it’s not at the top of the list as Queenstown leads with 89%, followed by the Western Bay of Plenty at 71%. In Queenstown, the high overall property values lead to a larger portion of $1 million+ suburbs. Meanwhile, the Western Bay of Plenty’s large lifestyle blocks contribute to its elevated property prices, with these blocks representing around 35% of the area’s properties.
Regions like Waipa, Waikato, Waimakariri, and Tasman (Te Tai o Aorere) also have significant shares of lifestyle properties. Meanwhile, Taupō and Wellington are still pricey markets, with holiday homes and high-end suburbs pushing values up.
Goodall finished the article saying $1 million remains a useful benchmark to gauge housing affordability for the average household in key markets like Auckland, Waikato, and Queenstown. With new debt-to-income ratio limits for mortgage lending, there is hope for some moderation in house prices.
Boosting housing supply remains crucial, and government efforts to facilitate long-term development, such as designating land for future projects, are a positive step in addressing this issue, according to Goodall.
