Remarkable growth in home prices across New Zealand
Five years since the onset of COVID-19, New Zealand’s housing market has witnessed substantial increases in home values, with more than 200 suburbs seeing rises exceeding $250,000, amidst evolving mortgage rate wars and a recent uptick suggesting a subtle market revival in 2025.
This phenomenon, documented by OneRoof, demonstrated the long-term effects of the housing market surge, despite a notable 12% decline in home prices from the peak.
Top performers and regional highlights
OneRoof’s analysis highlighted that, in the wake of COVID-19, Arrowtown and Lake Hayes experienced the most dramatic value increases, with each suburb's property values soaring by over $1 million.
In stark contrast, Wellington’s suburbs saw minimal growth, struggling against broader market trends.
Meanwhile, regions like Christchurch and the Queenstown-Lakes area enjoyed remarkable appreciation, bolstering their local housing markets.
Substantial gains across various housing market segments
In terms of dollar value, the highest gains were observed in holiday destinations popular among affluent buyers, including Arrowtown (up $1.228m), Lake Hayes (up $1.016m), and Omaha (up $994,000).
These areas, known for their luxury properties, have drawn significant investment over the past five years.
Percentage-wise, lesser-known suburbs like Cobden, Blaketown, and Runanga, all located on the West Coast, recorded the most substantial relative increases.
These regions, while housing some of the country’s most affordably priced homes, saw property values nearly double in percentage terms, OneRoof reported.
The mixed impact on homeowners
The OneRoof research also highlighted the variability of market performance across different regions and economic segments.
While many homeowners enjoyed significant financial gains—with the average property owner making at least $200,000 since April 2020—the benefits were not uniformly distributed.
Some areas, particularly those housing investor-dominated apartments or suburbs in Wellington, saw declines in property values.
Outlook and future trends
Despite the challenges posed by fluctuating interest rates and affordability issues, the housing market is showing signs of a resurgence, bolstered by declining interest rates.
The overarching trend indicated a recovery phase, with most regions expected to maintain or increase their property values in the coming years.
