Source: Quality Valuations (QV)
Residential property values have largely been kept at a standstill throughout the first quarter of 2025 with few exceptions.
Our latest QV House Price Index shows home values have crept up just 0.2% to a new national average of $903,928 in the March quarter, down slightly from the 0.5% quarterly growth recorded in February. That figure is now 2.3% lower than the same time last year and 15% below the market’s peak in late 2021.
Across New Zealand’s main urban areas, just Whangarei (2.6%), Rotorua (3.6%), Nelson (1.7%) and Christchurch (1.1%) recorded average home value growth in excess of 1% throughout the three months to the end of March 2025. Auckland (-0.1%), Wellington (-0.3%) and Hamilton (-0.3%) recorded small losses, while home values in Palmerston North and Dunedin were stationary.
QV operations manager James Wilson said market conditions remained “pretty soft” across Aotearoa. “Residential property values continue to bubble up and down slightly from month to month but have been kept virtually motionless as a whole throughout the first quarter of 2025.”
“Although interest rates have reduced markedly, buyers are still finding the current economic climate to be a challenge. Job worries and a rise in unemployment are causing many to be cautious and play it safe right now, which is understandable. This is one factor that has helped to keep the brakes on throughout the first quarter of 2025 – a sizeable surplus of properties for sale is another,” he said.
“It seems sellers are out in force across Aotearoa today. You don’t have to walk very far around the neighbourhood these days to see a ‘for sale’ sign. Ample properties for sale and a lack of meaningful competition are helping keep prices really flat for now. That’s no bad thing, as first-home buyers continue to make up a larger share of the market overall.”
However, Mr Wilson said there was also growing evidence to suggest that investors were beginning to re-enter the market again following changes to the interest deductibility rules and recent interest rate reductions.
“Investor activity continues to increase relative to first-home buyer activity. A ‘getting in early’ mindset appears to be emerging in some key areas with interest rates only expected to reduce further. But this is also being tempered by a cautious approach to the economy. Again, it is understandable given current conditions.”
Mr Wilson expected the real estate market’s current flat trend to continue into autumn and eventually winter, even as economic conditions slowly improve. “It’s going to take some time before interest rate relief fully takes hold and for the labour market to regain its footing again. In the meantime, those who are in a position to purchase are going to benefit from having a wider selection to choose from.”
“When the economy does eventually recover and all the excess stock that is available for sale on the market today is sold, that’s when we will see some more sustained home value growth. It could be a while yet,” he concluded.
Northland
It’s been a relatively flat first quarter of 2025 in Northland.
Home values have increased across the wider region by just 0.4% on average since the start of 2025. Whangarei (2.6%) has recorded the most growth by far; Far North (-2.8%) has experienced the least; Kaipara (0.1%) has done little more than break even.
The average home is now worth $674,678 in the Far North, $734,326 in Whangarei, and $835,041 in Kaipara.
Auckland
Residential property values have dipped slightly this quarter across much of Auckland.
The average home value has reduced by just 0.1% to $1,244,605 in what was the Super City’s first negative quarter since October last year.
Rodney (0.2%), Manukau (0.2%) and Franklin (1.1%) experienced some marginal growth on average. Otherwise home values reduced on the North Shore (-0.9%) and in the local council areas previously known as Auckland City (0.1%), Waitakere (-0.7%), and Papakura (-0.5%).
This is in contrast to a small 0.6% rise in average home value throughout the three months to the end of February 2025. The average home in Auckland is now worth 3% less than the same time last year and 19.2% less than at the market’s peak in late 2021.
Local QV registered valuer Hugh Robson said prices looked as though they had largely stabilised, but there was still little to no prospect of sustained growth in the immediate future.
“We’re at the end of summer now and it has been a fairly quiet one. The market continues to plod along with not a lot happening. First-home buyers are the most active sector, but agents are reporting fairly low attendance at open homes across the board,” he said.
“There is quite a lot of stock on the market at present, but there just isn’t a large amount of demand. It seems many people are still understandably concerned about retaining their jobs and about dealing with the high cost of living.”
Bay of Plenty
Home value growth remains flat-to-gently rising in Tauranga.
The city’s average home has grown in value by 0.4% in the March quarter to $1,023,465 – down slightly on the 1.6% growth recorded throughout the three months to the end of February, and the 1.4% growth recorded throughout the three months to the end of January.
The city’s average home is now worth 1.7% less than the same time last year.
Meanwhile, home values have also risen by an average of 1.3% across the wider Bay of Plenty region this quarter. Rotorua (3.6%) and Gisborne (1.3%) recorded some growth; Opotiki (-1.4%) recorded a small average reduction.
Waikato
Home values in Hamilton have experienced a small loss throughout the first quarter of 2025.
The latest QV House Price Index shows Hamilton’s average home is now worth $787,886, which is 0.3% lower than at the start of this year but 0.5% higher than at the same time last year.
This compares to a small 0.6% increase in average home value throughout the three months to the end of February, and a relatively sizeable 2.3% increase throughout the three months to the end of January.
“Persistent economic uncertainties, including rising unemployment, weakening business conditions and the potential imposition of higher tariffs by the US continue to impact market conditions,” said local QV registered valuer Marshall Wu.
“While March is traditionally the busiest month of the year for the residential market, unsold inventory remains relatively high. This is providing buyers with more choices and less urgency in making purchasing decisions, while some sellers are compelled to lower prices to secure sales.”
“As the market transitions into the cooler months, the housing sector is expected to remain subdued,” Mr Wu added.
Taranaki
The average home in New Plymouth is now worth just 0.3% more than the same time last year.
It follows another quarter of just modest growth. The city’s average home value grew by just 0.3% to $723,836 – compared to 1% growth in the February quarter, and 1.2% growth in the January quarter.
Meanwhile, the average home value in South Taranaki has shrunk by 1.2% to $437,452 this quarter, and increased by 1.6% to $499,508 in Stratford.
Hawke’s Bay
Napier and Hastings had contrasting quarters once more.
Home values increased by an average of 0.7% in the former and reduced by 1.7% in the latter.
Across the wider Hawke’s Bay region, home values decreased by 0.5% throughout the three months to the end of March 2025. It means the average home in the region is now worth 0.9% less than the same time last year.
Palmerston North
Residential property values remain largely static in Palmerston North.
The city’s average home value is unmoved this quarter at $635,891, following a small 0.3% average reduction during the month of March itself.
This is compared to a small 0.9% increase in the three months to the end of February, and 1.1% growth in the three months to the end of January.
“The local property market remains stable with limited price movement,” said QV registered valuer Olivia Betts. “In February and March we saw a large increase in the number of listings, giving buyers even more choice and buying power. We also saw an increase in sales activity, which is not uncommon before autumn and winter sets in.”
“First-time homebuyers are still showing strong interest in properties priced around the mid-$500,000 range, especially those that have been updated within the last 20 years,” she added.
Wairarapa
Home value reductions appear to be slowly gaining traction in the Wairarapa region.
Our latest QV House Price Index shows Masterton’s average home value has reduced by 3.1% this quarter to $562,681. Carterton’s average home reduced in value by 4.7% to $603,755, and home values in South Wairarapa also reduced by 4.4% to a new average of $745,740.
The average home in the region is now worth 2.6% less than the same time last year. This is compared to a national average decline of 2.3% annually.
Wellington
Residential property values have dwindled in Wellington this quarter.
The latest QV House Price Index shows the region’s average home value decreased by 0.3% to $838,916 throughout the first three months of 2025 – a reversal of the 0.3% average growth recorded throughout the February quarter.
Kapiti Coast and Porirua bucked the trend this quarter with average growth of 1.9% and 0.6% respectively. Otherwise, Upper Hutt (-0.4%), Hutt City (-0.2%), and Wellington City (-0.5%) all recorded small average home value losses.
The region’s average home value is now 4.2% lower than the same time last year and 23.2% below the market’s previous peak in late 2021.
QV senior consultant David Cornford said it was a continuation of the same flat theme as in previous months.
“Despite values being relatively flat, there is still reasonable activity in the market – particularly from first-home buyers. Open home attendance has been steady throughout the first quarter of 2025 for well-presented and well-located properties,” he said.
“Buyers are active. However, the number of properties on the market is providing them with plenty of options, as well as some extra bargaining power. It will likely take some time to work through this existing stock and we’ll have to see an uptick in general economic and employment confidence in the capital before any significant improvements in the market flow through.”
Nelson
Home value growth remains consistently slow in Nelson.
The city’s average home has increased in value by 1.7% in the March quarter – only a fraction of a percentage point off the 1.6% growth recorded in the February quarter, and within striking distance of the 1.2% annual growth recorded back in the January quarter.
At $794,843, Nelson’s average home value is now 2% higher than the same time last year.
QV Nelson/Marlborough manager Craig Russell said the majority of activity was in the $500,000 to $800,000 price bracket. “Market confidence is subdued with economic indicators still showing weakness,” he said.
“Renovated properties are in more demand than unrenovated ones and vendors who overprice their property are having to adjust their expectations to achieve a sale within a reasonable time frame. Stock levels remain high, with purchasers generally having a reasonable range of options.”
West Coast
Housing figures continue to fluctuate from month to month and quarter to quarter on the West Coast.
Our QV House Price Index for March 2025 shows that the average home value has risen in Westland District by 4% to $483,677 this quarter. Average home values have reduced by 2.8% to $367,073 in Buller and by 0.4% to $451,564 in Grey.
The average home on the West Coast is still worth 5.2% more than the same time last year. This is compared to an average annual home value decline of 2.3% nationally.
Canterbury
Our latest housing statistics show minimal movement across Canterbury.
Christchurch’s average home value has increased by only 1.1% since the start of this year to reach $774,614.
Likewise, home values in Hurunui and Waimakariri have grown by an average of just 0.5% and 1% to $645,982 and $720,068 respectively.
“Our QV House Price Index results for March once again show modest growth in values, with a similarly steady increase to last month,” said local QV registered valuer Olivia Brownie.
“Though we have seen a busier month in the residential property, it still appears to be somewhat balanced at present, with plenty of listings stifling any significant growth. Yet there is positive sentiment and it has been active with buyer interest in all property types,” she added.
Meanwhile, the average home in Selwyn increased in value by 0.5% this quarter to $844,344. Ashburton recorded no change at $575,234, and Timaru’s average home value reduced marginally by 0.9% to $530,232.
Mackenzie saw the largest average home value increase this quarter, rising 2% to $788,306.
Otago
Residential property values in the Otago region have done little more than break even throughout the first quarter of 2025.
Our QV House Price Index for March 2025 shows values have lifted across the region by an average of just 0.2% since the start of the year, with Dunedin’s average home value registering no growth whatsoever at $645,081. That figure is 1.5% higher than the same time last year.
Central Otago (2.1%) and Waitaki (1.3%) recorded more growth this quarter; Queenstown (-0.1%) and Clutha (-0.3%) recorded less.
Local QV registered valuer Rebecca Johnston commented: “These figures highlight stable, albeit minimal, growth across the region and the continuation of it being a buyers’ market.”
“The property market in Dunedin has been relatively stable compared to other New Zealand cities, showing resilience amid broader national trends,” she added.
Queenstown
Residential property values have wavered by just a fraction of a percentage point in Queenstown this quarter.
Our QV House Price Index for March 2025 shows the average property value has reduced locally by just 0.1% this quarter to $1,819,173. That is slightly smaller than the 0.4% average reduction recorded in the February quarter.
Home values in Queenstown are now 0.4% lower on average than at the same point last year.
Invercargill
The average home in Invercargill is now worth just 0.5% more than the start of 2025.
The city’s average home value has sunk below the $500,000 mark once more, following a small 0.4% reduction during the month of March. The average home here is now worth $498,565, which is 3.7% higher than the same time last year.
Local QV registered valuer Andrew Ronald agents were still reporting strong interest for properties under $600,000, with multiple offers common. “This is likely to flow through to strengthening value levels over the next few months.”
“There is still steady demand from first home buyers and investors are beginning to return to the market with the restoration of interest tax deductibility rules,” he added.
The QV HPI uses a rolling three month collection of sales data, based on sales agreement date. This has always been the case and ensures a large sample of sales data is used to measure value change over time. Having agent and non-agent sales included in the index provides a comprehensive measure of property value change over the longer term.