House Prices Rise Nationwide, Wellington Continues to Buck the Trend

New Zealand’s housing market is showing tentative signs of recovery, with property values rising across most regions, according to the latest QV House Price Index. Nationally, house prices increased by 1.1 percent over the three months to December, indicating improving market confidence. However, the recovery remains uneven, with Wellington continuing to experience declining values, setting it apart from other main centres.
The national average home value now stands at $910,118, which is 0.9 percent higher than a year ago. Despite this uplift, prices remain 13.1 percent below the peak reached in January 2022, underscoring that the market has not yet fully rebounded from the earlier downturn.
Most regions recorded quarterly growth, reflecting improving activity across a wider range of markets. Christchurch led the main centres with a 2.5 percent increase, followed by Hamilton at 2.1 percent. Auckland, which had been under pressure earlier in the year, showed signs of stabilisation, recording a 0.8 percent rise after several consecutive quarterly declines.
Regional centres also performed strongly. Invercargill saw the highest quarterly increase at 3.3 percent, while Rotorua and Whangārei recorded gains of 2.6 percent and 2.5 percent respectively. QV spokesperson Andrea Rush said the widespread nature of the growth suggests value movements are now occurring across a broader cross-section of the country.
Despite rising activity, buyers continue to hold a strong negotiating position. The number of homes available for sale nationwide is at its highest level in a decade, giving buyers more choice and limiting upward pressure on prices. Rush said this dynamic is helping to improve affordability in relative terms, particularly for first-home buyers, who remain active in many markets.
Apartments and townhouses in Auckland and Christchurch continue to face price pressure due to high supply levels, elevated building and servicing costs, and the fact that standalone houses have become more competitively priced following recent declines.
New housing supply continues to grow. Stats NZ reported that 35,969 new homes were consented in the year to November 2025, a 7 percent increase compared with the previous year. Multi-unit developments drove this growth, with 9.6 percent more townhouses, flats, and units consented year-on-year.
However, buyer preferences are shifting. Many purchasers are opting for standalone homes on individual sections, which offer greater privacy, storage, parking, and outdoor space. These features are often lacking in higher-density developments and, in many cases, are not significantly more expensive. Agents report stronger demand for developments that offer these amenities, particularly in sought-after locations.
Rush also noted a “reset” in development land values in areas such as Waitākere, Manukau, and Papakura. High interest rates and elevated building costs have made some projects unviable, leading to land being resold at lower prices than those paid at the market peak.
Wellington remains the only main centre where house values are still falling, down 0.5 percent for the quarter and 3.6 percent compared with a year ago. Rush said the latest decline suggests stabilisation rather than further sharp falls but highlighted ongoing challenges, including public sector job losses, population outflows, students leaving the city, and people moving overseas.
These factors have contributed to an oversupply of housing, both in rental and owner-occupied markets, placing continued downward pressure on prices. In some Wellington suburbs, values are now around 30 percent below previous peak levels, improving affordability for first-home buyers, although higher interest rates continue to make borrowing more difficult.
Property investment coach Steve Goodey described Wellington as flat but showing early signs of recovery. Rental demand is improving after rents dropped 7 to 10 percent, prompting landlords to reduce prices to improve occupancy. Real estate salesperson Mike Robbers also expressed optimism, noting that late January traditionally brings renewed buyer interest as open-home activity resumes.
Looking ahead, Rush expects 2026 to be a broadly stable year. While the upcoming election may encourage some caution, high housing supply across the country is likely to keep price growth subdued, ensuring buyers continue to have the upper hand. -TIN Bureau