Is that this the perfect time to purchase a house? There is a surplus of property listings, rates of interest are at manageable ranges, and sellers are having to satisfy the market with decrease costs.
In 2021, the median home worth was 9 occasions the annual median earnings. It presently prices 6.3 occasions the annual median earnings to purchase a median home – a major enchancment for consumers.
Throughout Aotearoa, home costs stay 16.1% beneath their 2021 peak*, however there’s monumental regional variation. Some areas are a lot farther from their peak, whereas others are seeing their highest-ever costs (we’re taking a look at you Kaikoura, Westland and Gore).
There are many components at play, together with regional economics, housing provide, and politics.
Some components of New Zealand appear to be notably good shopping for proper now: areas with an oversupply of townhouses, areas with the most important hole to earlier peak worth, and areas the place present properties are effectively priced.
A intelligent purchase now might provide help to construct fairness as home worth development turns constructive once more.
1.   Wellington Metropolis and Larger Wellington area
Homes in Wellington Metropolis are nonetheless 25.1% beneath their peak. Wellington’s property market is uniquely tied to politics: home costs and rents are inclined to ebb and circulation in step with authorities spending. Proper now, the federal government is tighter on hiring and spending, and property values mirror this. If financial patterns repeat, costs are more likely to rise when the federal government opens up its large pockets.
What’s taking place in Wellington ripples into the encircling areas, and home costs in many of the decrease North Island stay beneath peak. Higher Hutt and Decrease Hutt are down 23.9% and 24.8%, respectively, and in Porirua they’re down 21.9%.
Wellington is constantly one of many highest-earning areas of New Zealand, with a median family earnings of almost $169,000 within the 12 months to March 2025. Each Higher and Decrease Hutt have family incomes above the nationwide common (round $145,000 in comparison with the nationwide common of $135,000), whereas in Porirua it’s a wholesome $166,000. This means that if in case you have a safe job in Larger Wellington, this could be the right time to purchase a home.
Wellington has plenty of newly constructed townhouses, so you should buy a brand new or near-new three-bedroom home for beneath $800,000. In Decrease Hutt, new three-bedroom townhouses can be found for round $600,000, and a bit extra in Higher Hutt. It prices round $3,000 per sq. metre to construct a townhouse, placing a 150m2 townhouse at $450,000 to construct. With a piece within the Hutt more likely to price you round $300,000, these townhouses appear to be comparatively good worth.
In Porirua, present properties are greater than 10% cheaper than new ones, so if in case you have the endurance and funds for a full renovation, you can doubtlessly create a good chunk of fairness.
Or keep away from an older home and plump for one thing newer. In Whitby, for instance, a three-bedroom 2020 townhouse was listed for round $670,000 in July. With sections in Whitby nearer to $300,000, it will be exhausting to construct for this worth.
2.   Whangarei
With 21% of residents aged 65-plus, Whangarei households have a comparatively low median earnings of $109,000. Home costs stay 17.7% beneath peak, and there are some enticing offers to be discovered.
A five-year previous residence in One Tree Level for $950,000 on 600m2 is interesting, proper by the marina, given {that a} bigger, however much less favourably positioned part close by is ‘enquiries over’ $625,000. That is an space the place cautious shopping for might reward you handsomely when costs begin rising once more.
3.   Christchurch
Whereas costs are solely 4.5% beneath peak, the oversupply of townhouses should still provide alternatives for savvy consumers. BRANZ estimates that the Canterbury area has a surplus of round 455 properties, in comparison with a virtually 10,000 shortfall in Auckland. Christchurch was named ‘townhouse capital of NZ’ late final 12 months, with experiences that some two-bedroom townhouses had been being offered for $200,000, or 25% lower than their buy costs.
All this provides as much as improbable shopping for, given how briskly the town is rising in recognition. In July, you can discover near-new central three-bedroom townhouses ranging from round $650,000. And with sections close to the town ranging from $350,000, you couldn’t construct it for that.
4.   Outer Auckland
As a complete, Auckland’s home costs stay 20.9% down on peak, with Waitakere (-23.5%), Papakura (-22.8%) and Manukau (-22.1%) seeing the most important declines. These areas have all seen substantial improvement in recent times, inflicting an oversupply in townhouses, which has been blamed for the town’s home worth hunch. As a result of Auckland is by far the commonest vacation spot for brand spanking new migrants to settle, the autumn in immigration has additionally dented demand within the tremendous metropolis. Might you purchase now earlier than the restoration results in home worth rises?
Should you’re house-hunting in west and south Auckland, you’re in a superb place to barter. Close to-new properties are promoting for lower than you can construct them. For instance, in July a 200m2 part in Flatbush was priced at round $500,000, however you can purchase a two-year-old three-bedroom townhouse in the identical suburb for $715,000. That appears like very good shopping for contemplating you nearly actually couldn’t construct a three-bedroom residence for lower than $300,000.
5.   Nelson Metropolis
Nelson is mostly fairly costly contemplating that family common incomes are on the low facet, at simply over $100,000 – however that’s partly as a result of excessive proportion of retirees. What’s attention-grabbing is that Nelson’s new properties promote for a sizeable 20% margin above present properties ($823,000 vs $684,000). This means that persons are joyful to pay for a house that’s prepared to maneuver into and requires no work, so there’s potential to create fairness with a cheap renovation.
Down 12.3% from peak, the native market is mostly pretty sturdy. Nonetheless, if you’ll find the precise do-up and a eager tradie to get the work accomplished at a pointy worth, there’s a chance right here.
Run your individual numbers
Each property is exclusive, so whether or not it’s a cut price will rely loads in your priorities and funds. Ensure you do your market analysis before you purchase, so what nice worth shopping for seems to be like for you and your family.
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**Knowledge sources: Distinction from peak knowledge as at 30 June 2025, provided by Cotality.  Hole between new and present construct knowledge based mostly on gross sales for 12 months to June 2025, provided by Cotality.
