Luxury shift signals new pressure points for Kiwi buyers
Auckland has finally lost its long-held title as New Zealand’s most expensive property market, with the Bay of Plenty now sitting at the top of the price table.
Trade Me Property figures show the average asking price in the Bay of Plenty has climbed to $963,000, edging past Auckland as the national average slipped to a one-year low in December.
Trade Me Property customer director Gavin Lloyd (pictured) said the shift is a major moment for the market.
"For the first time in recent history, we’ve seen the Bay of Plenty take the top spot as the most expensive region in the motu, with its average asking price climbing to $963,000," Lloyd said. “This is a massive result for the region, especially considering Tāmaki Makaurau dipped below the million-dollar mark for the first time since August."
The reshuffle is occurring just as mortgage rates start to edge higher again, with the OCR at 2.25% and the next move now more likely to be up than down.
Ten-year catch-up finally tips the balance
Lloyd said Auckland’s dominance has been eroding for years as other regions, especially the Bay of Plenty, steadily closed the gap.
“The price gap between Auckland and the next most expensive region has been steadily shrinking for a decade," he said. "Ten years ago the difference was over $300,000, but by 2025 it had narrowed to roughly $100,000–$150,000.
"In the last couple of years, the Bay of Plenty has almost always been ranked the second-most expensive region, so it’s less of a shock and more of a natural progression."
Lloyd pointed to diverging buyer segments in each market.
“Buyer demographics is a key driver behind the flip," he said. "In Auckland, we’ve seen a slight increase in properties under $800,000, the typical first-home buyer bracket, while the percentage of high-end properties over $2 million is trending downwards.
“Conversely, the Bay of Plenty is seeing a surge in the luxury market. In December, the region had a higher percentage of properties over $2 million than Auckland. This suggests the buyer demographic there is shifting away from first-home buyers toward those seeking premium lifestyle properties."
National asking prices soften, but market holds its ground
Across the country, the national average asking price in December was $800,700, down 6% month-on-month and the lowest level since December 2024. Even so, prices remain 1.4% higher year-on-year.
"While seeing Auckland 'dethroned' is notable, the broader national decline to a one-year low is a typical reflection of the summer holiday period as Kiwi shift their focus from house hunting to the holidays," Lloyd said.
"However, it is encouraging to see the market ahead of where we were last December. This suggests a baseline of stability as we kick off a new year, even as the regional leaderboard gets a bit of a shake-up."
Hotspots, laggards, and a volatile Gisborne
The 2025 calendar year produced clear regional winners and losers.
Alongside the Bay of Plenty’s surge, Canterbury and Nelson/Tasman also outperformed the national cooling trend. Canterbury’s average asking price rose 7.5% year-on-year to $713,600, while Nelson/Tasman climbed 5.5% to $831,000.
Other parts of the motu saw marked corrections. Gisborne’s average asking price fell 34.2% year-on-year to $463,100, the steepest decline in the country. Marlborough dropped 5.5% to $725,650, and Wellington slipped 5.2% to $727,700.
Lloyd said the Gisborne numbers need to be read in context.
“Despite the sharp price drop, underlying demand in the region remains incredibly strong, with search activity surging 44% year-on-year in December," he said. "This massive spike in interest significantly outstripped supply, which only grew by 3% over the same period.”
Because Gisborne is a smaller market, a few listings can move the dial more than in bigger centres.
“The clear appetite from buyers suggests that the current price dip may be a temporary fluctuation rather than a lack of interest,” Lloyd said.
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