Houses outperform apartments in capital gains since 2015
New Zealand homes have significantly outpaced apartments in value growth over the past decade, according to new data from realestate.co.nz.
Between June 2015 and June 2025, the national average asking price for a standalone house rose 56.8% or $296,096, climbing from $521,183 to $817,279. In contrast, apartment prices rose just 25.1% or $131,793, moving from $524,926 to $656,719.
Vanessa Williams (pictured), spokesperson for realestate.co.nz, said the first half of the decade showed similar growth for both property types, but the second half widened the gap considerably.
“In the first five years, homes and apartments were tracking neck and neck,” Williams said. “However, the second half of the decade has seen the gap between these two property types widen considerably. The last 10 years have certainly been a game of two halves.”
“While apartments remain an attractive entry point for many buyers, this long-term data reinforces the increase in land value during the last five years.”
The data comes as seller expectations begin to align more closely with market reality. Between January 2024 and May 2025, the average New Zealand home sold for $3,930 more than its final asking price, based on an analysis of 53,000+ listings by realestate.co.nz and REINZ. Eight out of 19 regions saw sellers receive more than their asking price, suggesting renewed balance between buyer demand and vendor pricing.
The data also aligns with a broader housing market slowdown. Westpac has revised its house price growth forecasts for 2025, with chief economist Kelly Eckhold citing patchy demand and rising supply. ANZ has also reported a 0.3% monthly price dip in June, with elevated listings and subdued sales volumes contributing to renewed buyer caution.
Buyers still see apartments as viable investments
Despite homes outperforming on capital gains, the perception of apartments as a good investment remains relatively strong.
A recent survey conducted by realestate.co.nz and Ideally on June 10, involving 405 respondents, found 55% still considered apartments a better or similar investment to standalone homes, while 28% viewed them as a worse option.
“It’s interesting to see that many Kiwis still see apartments as a comparable investment, despite the long-term data showing stronger capital gains for homes,” Williams said.
Kiwis prefer homes – especially when price isn’t a factor
Survey results also revealed that when asked without cost constraints, 85% of respondents preferred homes, while only 15% chose apartments. When factoring in affordability, the preference was split evenly at 41% each.
“It’s clear that Kiwis inherently view homes as more valuable,” Williams said. “When price is taken off the table, the overwhelming preference for homes reflects a desire for more space, land, and long-term lifestyle benefits – all of which continue to influence perceived value.”
Price gap expected to widen
With land value and buyer sentiment favouring standalone properties, realestate.co.nz expects the gap between home and apartment values to grow further.
“Homes typically offer greater land value and appeal to a broader range of buyers, including families and investors looking for long-term capital growth,” Williams said. “Unless apartment demand increases significantly or supply constraints shift, homes are likely to retain their lead in investment returns.”
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