Wellington sees $95,000 lift in asking price, Southland hits record high
New Zealand’s property market continued to show stable overall activity, but new figures from realestate.co.nz hinted at emerging regional momentum – particularly in the capital.
According to the May 2025 New Zealand Property Report, six of the 19 regions posted monthly and annual increases in average asking prices. Wellington stood out, with prices rising nearly $95,000 from May 2024 – a 12.9% jump.
This comes as ASB’s April 2025 Housing Confidence Survey found that a net 28% of Kiwis believe now is a good time to buy – the highest buyer sentiment reading since January 2011. The recent OCR cut to 5.25% has likely added to optimism, with economists expecting further easing amid global uncertainty.
“After months of subdued figures, this lift could be early evidence of buyer confidence returning to the capital,” said realestate.co.nz CEO Sarah Wood (pictured). “A jump like this gives vendors reason to feel optimistic.”
New listings in Wellington dropped 32.1% year-on-year, potentially driving the sharp price lift. However, Wood said a single factor isn’t enough to spark significant nationwide change just yet.
“We still need something significant to really move the dial in the property market,” she said. “Last week’s OCR drop wasn’t that, but if interest rates drop and we see more investors in the market, we’re likely to see a greater appetite for buying.”
Average asking prices rise across the southern regions
The national average asking price rose marginally – up 0.8% year-on-year and 1.4% month-on-month. Southland was a key highlight, hitting an all-time high of $564,291, a 6.5% annual rise.
Other strong regions included:
- Taranaki: up 13.1% to $756,271
- Wellington: up 12.9% to $828,531
- Otago: up 7.4% to $645,788
- Northland: up 3.6% to $850,725
- Hawke’s Bay: up 3.2% to $787,761
- Nelson & Bays: up 2.0% to $856,958
- Central North Island: up 1.2% to $782,120
The largest annual declines were in:
- West Coast: down 9.8% to $494,855
- Gisborne: down 6.3% to $634,604
- Central Otago/Lakes District: down 6.0% to $1,382,741
“We’ve had over two years of price stability and there’s no sign of real change just yet,” Wood said. “Immigration isn’t supporting a growing market at present, so we continue to remain in a holding pattern.”
Stock starts to clear in selected regions
Total stock levels reached 34,415 in May, 5.6% higher than the same time last year. However, five regions recorded year-on-year stock declines, including Manawatu/Whanganui (down 6.1%) and Waikato (down 3.6%), realestate.co.nz figures showed.
Month-on-month, all 19 regions saw stock drops – most notably:
- Gisborne: down 16.3%
- Southland: down 15.3%
- Otago: down 12.0%
“These regional dips could suggest that some of the higher stock levels we’ve seen over the past year are finally starting to clear,” Wood said.
Still, she said, “We aren’t seeing a ‘buyers’ rush’. During May, the number of properties that remained on our site for less than 30 days actually decreased compared to April.”
New listings show seasonal lift with regional contrast
Nationally, new listings rose 2.9% year-on-year, with 13 regions seeing increases. The West Coast led with a 30.4% jump, followed by:
- Central Otago/Lakes: up 29.3%
- Central North Island: up 26.5%
- Gisborne: up 23.3%
- Nelson & Bays: up 15.1%
- Bay of Plenty: up 9.2%
- Auckland: up 9.5%
- Canterbury: up 8.9%
Wellington was the exception, with new listings down sharply by 32.1%, realestate.co.nz data showed.
“The next few months will certainly be interesting off the back of last week’s OCR drop, the traditional quieter winter period, and the deadline for Healthy Homes,” Wood said.
“But it’s certainly exciting to see movement in the capital, especially because, as we know, big markets turn first.”
