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After the COVID pandemic, the New Zealand real estate market faced uncertainty. High mortgage rates and other factors stopped residents from purchasing their dream homes. Still, this year might be a good time to look at the real estate scene in New Zealand.
The Stats NZ 3.3% CPI (Consumer Price Index) increase in the previous quarter of 2024 bodes well for housing in the country. The inflation rate is a work in progress but as a first-home buyer, or investor, it’s best to know the average housing price range across different city suburbs.
Auckland
Auckland is the largest city of the nation which is divided into several regions. For a long time, housing cost in this area was above the national average but the development of some of its outer suburbs, combined with other economic factors, has led to a slight decrease in their value.
Generally, the city’s real estate value sits at an average of $1.5 million but the previously mentioned areas have homes with starting prices ranging from $550,000 to $720,000. Some of them are located at the city’s outskirts, which results in longer commutes.
According to Wayne Shum, Valocity Global senior analyst: “If you’re a couple in your 30s looking for an affordable Auckland starter home, you’re probably looking at new townhouses. In the $700,000 price bracket there are quite a few options in and around Mangere Bridge as well as in Sunnyvale, Henderson, Westgate, Silverdale and Millwater. It all depends on where you work”.
Christchurch
After the 2011 earthquake, Christchurch has witnessed significant changes to its real estate market. Real estate investors took a gamble with this area, giving it a facelift while getting good payouts for their trouble. Christchurch is now a modern location with well-linked roads, apartments, executive areas and gaming hubs.
Christchurch’s urban lifestyle even includes adult entertainment like gambling. The city has one of only six physical casinos in New Zealand, making it a great destination for those who enjoy a little fun on the weekends. Of course, those who prioritise convenience have a range of online casino NZ options available from the comfort of their own home still.
Property values start at $470,000 to $520,000 in Phillipstown, Aranui, Linwood and others. Many first home buyers and investors in the area are regular casino players.
A real estate agent, Keni Matangi, sold a three-bedroom house in Phillipstown at $450,000 in 2023. He said the agents recently recorded a good influx of buyers which confirms its urban lifestyle. The region is close to the Christchurch central business district, but it takes 20 minutes to reach Aranui during rush hour.
Wellington
Wellington offers a mix of character homes, modern apartments, and stunning harbour views. Like Auckland, it is known for its apartments which tend to be smaller than average. Suburbs like Wellington Central, Mount Cook, and Te Aro offer property prices ranging from $550,000 to $850,000.
It’s one of the more competitive markets in the country, however. Debbie Bane, a Wellington city agent recommends cash payment to her clients saying “You either have to have cash, or a bigger deposit.”
Dunedin
Real estate in this district is considered a good buy because of its laid-back environment. Dunedin is a popular choice for young professionals and families and seems like the nation’s go to location for affordable real estate. According to the Dunedin City Council, the city experiences a slow growth rate. It has a relaxed lifestyle, a community, and a growing number of cafes, bars, and shops.
Areas like South Dunedin, Forbury and Calton Hill have estates valued at $520,000 but sections close to the central business district are valued at $600,000 to $700,000.