Monday 16 November 2024 – New data from realestate.co.nz reveals that houses typically deliver stronger long-term price growth than apartments, but the gap is not as wide as many might expect.
On average, Kiwis move every five and a half years. During the five-and-a-half-year period between May 2019 and November 2024, both houses and apartments saw similar levels of growth. Over this time, the average asking price of houses increased by 29.6%, from $650,839 to $843,208. Meanwhile, apartments saw an increase of 27.1% over the same period, from $590,720 to $750,611.
Looking back 17 years ago, to November 2007, the gap widens, with houses seeing bigger increases. Between November 2007 and November 2024, the national average asking price for houses increased by 102.6%, from $416,173 to $843,208. In comparison, apartments saw an 82.8% increase during the same period, rising from $410,516 to $750,611.
Vanessa Williams, spokesperson for realestate.co.nz, attributes the difference to land value: “Houses have delivered stronger long-term gains because they typically include more land, which increases in value over time. In contrast, apartments often don’t benefit as directly from land value, as the land is usually shared among all units in the complex or, in some cases like leasehold properties, owned by someone else.”
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National average asking price – houses vs apartments |
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Nov-07 |
May-19 |
Nov-24 |
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Houses |
$416,173 |
$650,839 |
$843,208 |
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Apartments |
$410,516 |
$590,720 |
$750,611 |
Despite the slower growth in returns, Williams notes that the apartment market could be an attractive option for first-home buyers. Notably, the average asking price for an Auckland apartment in November 2024 was $750,596— 29.3% less than the average for a house in the region which had an average asking price of $1,062,295.
“The cost to get into the property market is often lower for apartments,” says Williams. “With an average asking price of an apartment in Auckland sitting at around $300,000 less than a house, the difference in deposit required could be a game-changer for first-time buyers.
“It’s not just about the numbers—lifestyle plays a huge role in choosing between a house and an apartment. Some buyers prioritise the convenience of city living with minimal maintenance, while others value the space and flexibility of a house.
Understanding these trade-offs will help you make the best decision for your future.”
For more insights on the differences between houses and apartments, including key considerations for buyers, listen to the latest episode of Making Cents, featuring Vanessa Williams from realestate.co.nz.
About realestate.co.nz
We’ve been helping people buy, sell, or rent property since 1996. Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real estate industry.
Dedicated only to property, our mission is to empower people with a property search tool they can use to find the life they want to live. With residential, lifestyle, rural and commercial property listings, realestate.co.nz is the place to start for those looking to buy or sell property.
Whatever life you’re searching for, it all starts here.
Want more property insights?
- Market insights: Search by suburb to see median sale prices, popular property types and trends over time.
- Sold properties: Switch your search to sold to see the last 12 months of sales and prices.
- Valuations: Get a gauge on property prices by browsing sold residential properties, with the latest sale prices and an estimated value in the current market.
Glossary of terms:
Average asking price (AAP) is neither a valuation nor the sale price. It is an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released simultaneously.
New listings are a record of all the new residential dwellings listed for sale on realestate.co.nz for the relevant calendar month. The site reflects 97% of all properties listed through licensed real estate agents and major developers in New Zealand. This description gives a representative view of the New Zealand property market.
Stock is the total number of residential dwellings that are for sale on realestate.co.nz on the penultimate day of the month.
Rate of sale is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market.
Truncated mean is the method realestate.co.nz uses to supply statistically relevant asking prices. The top and bottom 10% of listings in each area are removed before the average is calculated to prevent exceptional listings from providing false impressions.
