Premium buyers flock south as national market steadies
New figures from Trade Me’s latest Property Pulse Report show a stabilising national market but a reshuffle at the top end.
With Arrowtown now commanding an average asking price above $3 million, affluent clients and property investors are increasingly targeting South Island lifestyle locations, even as overall values hold flat.
Arrowtown leads new ‘golden postcode’ pack
Across New Zealand, the average asking price in March sat at $862,550, essentially unchanged (up just 0.3% year-on-year) and 2.5% lower than February.
That flat backdrop contrasts with the sharp gains in Arrowtown, which has been crowned the country’s most expensive suburb with an average asking price of $3,026,200 for the year to date.
The ranking is based on Trade Me’s Property Price Index for January–March, and only includes suburbs with 30 or more live residential listings.
“Arrowtown hitting the $3 million mark is a massive milestone,” Trade Me Property customer director Gavin Lloyd (pictured) said. “It’s no longer just a holiday destination, it’s fast becoming a status postcode for those looking for a mix of heritage charm and alpine luxury.”
Parnell and Westmere in Auckland round out the top three, but Lloyd noted that “the South Island is making its presence felt with Arrowtown, Wānaka, Queenstown, and Christchurch’s Fendalton all firmly in the multi million-dollar club”.
Parnell’s average asking price sits at $2,640,350 and Westmere at $2,598,900, with former frontrunner Remuera slipping to fourth on $2,378,500 and Ponsonby rounding out the top five at $2,300,650.
Balanced conditions give buyers more leverage
The March data also signals a more even playing field for clients assessing borrowing capacity. New listings rose 2% month‑on‑month, while search activity lifted 5%, suggesting neither buyers nor sellers hold a clear advantage. Recent adviser surveys also point to quieter buyer enquiry, with many brokers reporting softer demand even as banks remain willing to lend.
“We are seeing a fairly balanced market right now,” Lloyd said. “Supply is up, but so is demand. It’s a great time for buyers who have been sitting on the sidelines, as they have more choice than they did a year ago, particularly in regions such as Otago and Southland where new listings have jumped by 14% and 15% respectively”.
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