House prices continued to fall in New Zealand towards the tail end of 2022, making it the largest year-on-year drop since 2008.
The Real Estate Institute of New Zealand (REINZ) reported falling prices and rising interest rates in December last year resulted in an uncertain property market.
The REINZ’ house price index measures the changing value to residential housing, tells us that the value dropped 13.7% in November on the year before when the market was at a high.
What’s changed on the New Zealand property market?
The REINZ index found that the average home value in New Zealand ended 2022 10.2% lower than in January 2022. The average price dropped $10,000 to $810,000 from October 2022 – 12.4% lower than in October 2021.
Not only this, but the housing stock in all New Zealand regions saw year-on-year stock increases during December 2022. Four regions saw stock more than double. National stock levels are up 53.3% since December 2021.
This is great news for buyers as it means there’s more properties available on the market for them to browse/choose from.
House price index (HPI)
Yearly prices were lower in 14 of the 16 REINZ regions. The anomalies being the West Coast and Southland which still managed to surge with record highs.
The largest price falls were in Auckland, which dropped 18.1%. As of December 2023, the median house price is €1,065,000 While it still remains steep, it’s dropped considerably in recent years. Nationwide, the house price index fell 13.7% year-on-year.
New Zealand is home to less than 10% of the UK’s population. While the UK is home to some 66 million people, there are only 4.8 million people living in New Zealand. Plus, there’s 10% more landmass than us. And what spectacular landmass it is!
Southland: the cheapest place to live in NZ
Southland is, unsurprisingly, New Zealand’s southernmost region. It’s made up of the South Island and Stewart Island/Rakiura. The location is renowned for its spectacular landscapes and wildlife. The Southland way of life is considerably slower and more relaxed than in nearby cities. The region offers a chilled lifestyle with little traffic, exquisite nature and stricking architecture.
Property in Southland has become largely sought after as Kiwis recognise the region as a great place to own property. According to REINZ in November 2022, the median house price in Southland is $475,000 (£249,132 as 10.01.23).
Wellington, for the best of both worlds
In December 2022 Wellington saw a 17.4% price fall year-on-year. The current median house price in Wellington is $795,000 (£416,500 as of 10.01.23).
Wellington is a wonderful place to move for those new to New Zealand as it’s full to the brim with culture and opportunities. Plus, it’s simple to find good value property located on the water with wonderful views guaranteed.
Outside the city centre, in the hills there’s ample market for family homes with fantastic views over the city. Make sure to check out Brooklyn and Khandallah for a leafy suburb with fab views and a great place to settle down.
Auckland: for city living
According to the Mercer World Liveability study, New Zealand’s Auckland was named the third most liveable city in the world in 2019 (the most recent study). Two in every five Auckland residents are from other countries too, so there’s a welcoming community of expats who you will be able to help you settle in.
As a major city, Auckland boasts some gorgeous, clean and safe beaches where you can swim, surf, sunbathe and scuba dive. Plus, it’s surrounded by green hills which are ideal for active bodies who enjoy a hike or run.
Furthermore, Auckland’s food is some of the best and most affordable in the country – particularly Asian fare – and their coffee is the stuff that dreams are made of. Also, if you want to feel connected to culture, Auckland’s museums, festivals, and arty communities will keep you engaged. If a big-name musician or band are in town, you better believe their one stop in the country is Auckland.