Invercargill and New Plymouth outperformed while big centres recorded another soft year
Property values across New Zealand declined by 1% over 2025, according to Cotality NZ’s latest Home Value Index, with most of the year spent in retreat after early gains.
The national median value now sits at $808,430 – down 17.6% from the early 2022 peak. Houses fell 0.7% over the year, while townhouses dropped 1.8% and apartments declined 4.2%.
December ended with a 0.2% fall, following a 0.1% dip in November.
Major centres struggled
Major centres struggled throughout the year, with Auckland down 0.6% in December, Hamilton off by 0.7% and Wellington down 0.4%. Christchurch, Dunedin, and Tauranga recorded modest monthly gains.
Auckland’s annual fall of 2.6% was led by a 3.5% drop in Auckland City and a 3.2% decline in Manukau. Wellington’s sub-markets all posted annual falls of at least 1.2%, with Lower Hutt down 2.3%. The Kāpiti Coast rose 0.2% in December but was down 3.4% for the year.
The median house price in Auckland was $1,047,044, followed by Tauranga at $935,174. Wellington’s median was $785,790, Hamilton’s $717,495, Christchurch’s $683,360, and Dunedin’s $612,171.
Provincial markets hit new peaks
In contrast, Southland’s market reached new highs in December, including Invercargill at $520,464 – a fresh peak. Queenstown and New Plymouth also recorded growth, a report from RNZ highlighted.
Cotality chief property economist Kelvin Davidson told RNZ that regional resilience was linked to relatively stronger economic conditions, especially in agriculture.
“There’s not necessarily a dramatic or consistent split at the moment between property value performance in our main centres versus the provinces, but there’s no doubt that the general vibe is still stronger in say Invercargill or New Plymouth versus Auckland or Wellington,” he told Stuff.
Conflicting forces shaped market
Davidson said 2025 was marked by “conflicting forces”, with lower mortgage rates offset by high stock levels and a weak labour market.
“December’s result – a minor fall – leaves the national median only slightly changed from 12 months ago,” he said.
He said ongoing increases in the supply of housing relative to population had also helped contain prices and improve affordability, with resource management reforms potentially reinforcing that trend.
Cautious optimism for 2026
Looking ahead, Davidson forecast a potential 5% rise in 2026 as confidence returns on the back of falling interest rates and economic improvement.
However, election-year uncertainty, regulatory settings such as loan-to-value and debt-to-income ratios, and debates around capital gains tax could weigh on sentiment.
“All in all, 2026 may well be a stronger year for the housing market than 2025 – despite the headwinds. It’s the year of rebuilding confidence,” Davidson told RNZ.
