New Zealand’s average property values have dropped for the fifth month in a row – according to fresh data from Cotality NZ, formerly known as CoreLogic.
In August, property values across the country were down -0.2% overall, according to its latest hedonic Home Value Index.
In total, this means nationwide property values have dropped -0.6% so far in 2025.
The modest gains seen in late 2024 and early 2025 have now been negated, Cotality NZ said.
The median nationwide is now $809,113 – down -17.2% from the peak in January 2022, and the lowest level since August 2023.
The value of properties in Auckland (-0.5%), Hamilton (-0.1%), Napier (-0.6%), Gisborne (-0.5%), and Wellington (-0.1%) have all dropped slightly.
Meanwhile, Dunedin (0.4%), Christchurch (0.2%), Queenstown (0.4%), Nelson (0.5%), New Plymouth (0.6) and Invercargill (0.5%) have all risen slightly.
Cotality NZ chief property economist Kelvin Davidson said: “Given the continued economic weakness, further increases in unemployment, and subdued confidence, it’s no surprise that property values are treading water.”
“While the downturn after the post-Covid boom has now petered out, steadier growth has yet to materialise.”
Davidson said the psychology and mindset around house prices can “change quickly”, and right now, “caution is the dominant theme”.
“With unemployment not expected to be at its peak just yet, it’s unlikely that many people will be rushing out to bid up house prices aggressively over the rest of 2025.”
Looking ahead
Davidson said he wouldn’t be surprised if the rest of the year remained consistent – with support from lower mortgage rates offset by a weak economy and elevated listings.
“That said, property sales volumes have basically ‘normalised’ and should rise further in 2026 as the lagged effects of lower mortgage rates continue to flow through – with more existing borrowers repricing their loans down to current interest rates. Those interest rates themselves may also drop further as the Reserve Bank pushes through more official cash rate cuts.
“Housing affordability also looks a bit more comfortable now, and the unemployment rate is projected to start easing downwards gently in the first few months of next year too, with the stock of listings also potentially drifting lower.”
Adding it all together, Davidson concluded property values “may be poised to rise a little more clearly in 2026”.
However, he also noted a “fresh boom doesn’t look likely, especially given the debt to income ratio rules and Government measures to ramp up housing supply”.
