OneRoof data indicates significant price cuts in high-end market
Recent findings by OneRoof indicated that several of New Zealand’s most affluent suburbs have seen substantial decreases in property values, with some areas experiencing declines exceeding $500,000.
The most notable drop occurred in Auckland’s Totara Park, where average property values plummeted by $1.2 million.
This trend represents a notable shift in the luxury real estate market, potentially opening doors for buyers seeking premium properties at lower prices.
Market dynamics and regional variations
The luxury housing sector has faced a downturn, with the average high-end market value dropping by $370,000.
OneRoof’s research pinpointed 12 suburbs where property values dipped by more than $500,000, highlighting Totara Park as experiencing the most significant fall due to an influx of lower-value townhouses.
Other areas like Oriental Bay, Remuera, and Kelburn saw decreases surpassing $600,000, attributed mainly to shifting market conditions and buyer hesitance.
Contrasting trends in select suburbs
Despite widespread declines, some regions bucked the trend.
Omaha’s property values reached new heights, climbing to $2.9m, up from a previous peak of $2.8m in 2022.
Similarly, Queenstown-Lakes suburbs such as Arrowtown, Lake Hayes, Kelvin Heights, and Wanaka hit new value peaks in the past year, although they have seen some recent pullbacks, OneRoof reported.
Overview of national market extremes
The OneRoof analysis covered 1,161 suburbs, with 38 (or 3.2%) boasting an average property value over $2m, a decrease from 73 at the market’s peak.
Auckland remains the hub for high-value properties, predominantly in waterfront and fringe lifestyle areas.
In contrast, the smallest price disparity between high and low market areas was found in Hamilton, with a 91% difference, illustrating a narrower range than in Auckland, where the gap reached up to $3.1 million between Herne Bay and Auckland Central.
Evolving market gaps
The disparity between the most and least expensive housing markets has evolved, showing both narrowing and widening trends across different regions.
Whangarei saw a significant reduction in this gap, whereas in Auckland City, the difference expanded, reflecting diverse economic forces at play across the country, OneRoof reported.
See the OneRoof report here for more details on New Zealand’s most expensive suburbs.
