It’s no secret that the New Zealand property market has been on a downward track this past year, with house prices continuing to fall from late 2022. However, we’ve just received news that values in some of the wealthiest suburbs in New Zealand recorded a fall in value by (in some cases) up to $300,000.
Chief property economist at CoreLogic NZ, Kelvin Davidson said, “It’s not just the upper end of the market that has seen a downturn. More than a third of suburbs across New Zealand saw double-digit declines over the last year.”
“Overall, this confirms that this downturn has been pretty deep and broad-based across many parts of the country – to the detriment of existing property owners, but a sign of hope for aspiring buyers who have their finances approved.”
Wealthy New Zealand suburbs with the biggest annual falls
CoreLogic’s Mapping the Market report for the first quarter of 2023 revealed over a third of suburbs saw double-digit declines in property value.
Ten of the so-called ‘top-end suburbs’ with values of +$2m recorded an annual decline in value of $300,000 or more. Some of those New Zealand suburbs are as follows.
Saint Marys Bay
One of the oldest and most historic parts of Auckland. Saint Marys Bay was founded by Bishop Jean-Baptiste Francois Pompallier arrived from France in 1936.
Westmere is a residential suburb in Auckland, home to about 2300 people. It borders the Herne Bay and is close to Auckland Zoo and Herne Bay beach.
Ōrākei is in Auckland City in the North Island of New Zealand. The suburb lies to the east of the city centre and on the shore of Waitematā Harbour, Hobson Bay and Ōrākei beach. Ōrākei has about 5300 residents. Fun fact: Ōrākei is Māori for ‘place of adornment’
Average Wellington home price: $1,050,000 (statista.com)
Wadestown was Wellington’s first suburb. It was named by John Wade in 1840 who arrived on the vessel Integrity. Today, Wadestown is an affluent area that’s separated from the business district by forest and trees.
Khandallah is another affluent area, and the village is extremely popular with locals as it is home to all amenities. The suburb overlooks Wellington Harbour and has good connections to the inner city.
Kelburn is an urban suburb just 1km from the business district. It’s just minutes from downtown and is popular with residents due to its high elevation and panoramic views of the city and bay.
Average Wellington home price: $790,000 (statista.com)
What does this mean for New Zealand buyers?
Well, if you’re looking to invest in luxury property or a home in the New Zealand suburbs, you can easily get more for your money due to the current volatility of the property market. For those with smaller budgets it means you budget may stretch further. For example, if you had a top-end budget of $900,000, it may be that now, you could get a house previously valued at $1.2m for the same amount.
If you’re buying overseas it pays to work with a foreign exchange service that specialises in overseas property. Here at Property Guides, we recommend Smart Currency Exchange to our readers as they have over 15 years-experience helping clients find and purchase their dream home overseas.
Buying in New Zealand
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