Central Otago posts the sharpest rise in home values by size
The cost of upsizing in New Zealand’s housing market is becoming increasingly stark, with new figures showing some buyers are paying hundreds of thousands of dollars more simply to gain an additional bedroom.
Data released by realestate.co.nz highlights how the number of bedrooms has become one of the strongest indicators of asking price differences. Across the country, the step from a three to a four-bedroom home added nearly $400,000 on average, while the move from four to five bedrooms pushed prices up by almost half a million dollars.
Vanessa Williams (pictured), spokesperson for realestate.co.nz, said the price jumps illustrate the influence of home size on value.
“Property owners who are willing to roll up their sleeves and add another bedroom through a smart renovation will likely benefit when selling. Not only can adding an extra bedroom make a property more liveable, but it can also deliver one of the most significant value boosts when it comes time to sell. On the flip side, buyers need to be aware of the price differences when upsizing,” Williams said.
The most dramatic increases were recorded in Central Otago/Lakes District, where the average asking price of a two-bedroom home was $858,387, compared with $1,412,870 for three bedroom – a rise of $554,483. Four-bedroom homes in the area carried an additional 53% premium, and five-bedroom homes were priced nearly $1 million higher than four-bedroom properties, reaching an average of $3,091,115.
By contrast, Auckland buyers faced the sharpest increase when moving from one to two bedrooms. The average asking price of a one-bedroom home was $513,668, but two-bedroom homes cost 50% more, at $772,483.
In Wellington, the equivalent increase was 45%, from $435,116 to $629,991. For larger homes in the capital, the gaps were more gradual, with three, four, and five-bedroom homes priced 33%, 28%, and 31% higher respectively.
In regions such as Waikato and Canterbury, the most notable changes came when upsizing from three to four bedrooms. The price difference was $288,519 in Waikato, representing a 39% rise, and $255,437 in Canterbury, equal to 36%.
Williams said the trends show why demand remains strong for larger properties despite the cost involved: “These homes are often seen as the ‘forever home,’ so buyers are willing to stretch further to secure them.”
