Slowdown hits key regions
After early gains in 2024, property values across many New Zealand suburbs have softened in recent months.
CoreLogic NZ’s latest Mapping the Market data revealed a mixed picture, with 50% of suburbs seeing value increases over the past year, but the last three months indicated a clear slowdown, particularly in Auckland, Wellington, Napier, and Nelson.
Auckland leads decline as suburban property values drop
Auckland’s market has experienced significant declines, with 129 of its 200 suburbs seeing drops over the past year, and 57 suburbs falling by more than 2%.
“The past 12 months is made up of two distinct phases: a period of recovery followed by a recent downturn,” said CoreLogic chief economist Kelvin Davidson (pictured above).
Suburbs like East Tamaki and Northpark saw values fall by over 6% in the past quarter.
Regional markets resilient despite headwinds
In Hamilton, the market remained relatively strong, with only three suburbs experiencing yearly declines, but recent data showed that 27 suburbs have recorded dips since June.
Wellington saw early resilience, but 74 of its 96 suburbs recorded declines in recent months.
“Rising affordability pressures and job insecurity have led to a more cautious buyer environment,” Davidson said.
Relief for home buyers, but slow rebound expected
With a recent cut to the OCR and falling mortgage rates, buyers may see some short-term relief. However, Davidson does not expect a swift recovery in property values.
“While lower mortgage rates will ease pressure on some buyers, affordability remains a major hurdle,” the CoreLogic economist said, predicting a subdued market into 2025.
Read the CoreLogic NZ media release and explore the Mapping the Market tool.
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