New Zealand's housing market sees promising start to 2025
January marked a positive beginning for New Zealand’s housing market, with an increase in property listings and a continuous rise in home values.
According to the latest OneRoof-Valocity House Value Index, the average national property value saw an uptick, suggesting sustained buyer interest fueled by favourable lending rates.
Regional growth highlights
The report highlighted significant value increases across various regions, with the West Coast and Auckland experiencing the most notable growth.
The West Coast saw property values increase by 2.2% to $486,000 over the last three months, while Auckland’s property values rose by 2%, reaching $1.307 million.
This growth underscores the diverse appeal of both the most and least expensive regions in the country.
Listings on the rise
The OneRoof-Valocity data indicated a 17% year-on-year increase in new property listings in January, with substantial contributions from regions outside Auckland.
Canterbury and Wellington saw new listings surge by 20% and 18%, respectively.
Owen Vaughan (pictured above), editor of OneRoof, noted the growing vendor confidence, despite the market facing historically high levels of available properties.
Buyer engagement and market dynamics
Despite the influx of listings, buyer activity remains robust, contradicting expectations of a sluggish start to the year.
“Buyers are chasing affordable homes and seem more comfortable making offers now that interest rates have fallen,” Vaughan said.
This shift could potentially moderate future value growth, but current dynamics suggest sustained market activity.
Regional value shifts and future outlook
While most regions saw property values increase, Marlborough, Otago, and Tasman experienced declines.
However, Southland and Canterbury are approaching their post-Covid peaks, indicating that not all regional markets are cooling down.
The OneRoof-Valocity report also pointed out that property values in nearly two-thirds of the country's suburbs rose during the last quarter.
Suburbs setting new records
Several suburbs, particularly in West Coast, Southland, and Otago, achieved new highs in property values, driven by strong buyer activity.
Notably, Omaha and Point Wells in Auckland’s Rodney district also reached new value peaks, highlighting the continued interest in premium coastal properties.
