Source: Quality Valuation (QV)
Dunedin City property owners will soon receive new three-yearly rating valuations by post.
Updated valuations have been prepared for all 57,395 properties in the district by independent valuers Quotable Value (QV) on behalf of Dunedin City Council. They reflect the likely price a property would have sold for on 1 June 2025, excluding chattels.
The total rateable value for the district is now $48,862 billion, down 0.1%, with the land value of those properties now $24,472 billion, a decrease of 4.8%.This reflects a downturn in the market since the district’s last revaluation on 1 July 2022.
Residential properties
Following the nationwide peak of late 2021, Dunedin’s residential home values began to decrease during 2022, bottoming out in mid-2023, with values declining by approximately 6% during that period.
Since then, there’s been a slight recovery, with the market remaining relatively flat, decreasing by less than 1% in the 12 months to the end of June. Some downward pressure remained at the new rating revaluation effective date of 1 June 2025, with August QV House Price Index data showing an average further -0.7% change in the three months after 1 June.
The most active part of the market is first-home buyers, driven by the sub-$600,000 segment. Investors have slowly returned on the back of increasing rents.
Listings rose in late 2024 but began to decline from March 2025. Sales volumes are up 15.6% on the same period in 2024. Overall, we consider the market to be entering a stable period of supply and demand.
Overall, residential values decreased by an average of -2.63% from July 1 2022 to June 1 2025. The average home value is now $664,651, while the corresponding average land value has decreased by 6.37% to $340,650.
“Property values have remained relatively stable within Dunedin City over the past three years and values have generally had minimal changes since the 2022 rating revaluation,” said QV Urban Valuations Manager, Tim Gibson.
“Properties that are in good condition, and modern dwellings, are seeing more demand and growth than the average property in Dunedin. While poorly maintained or more dated properties are likely to have seen larger decreases,” he said.
“Land value changes were also varied, with increases in areas where townhouse development is still occurring and in prime locations such as Māori Hill, Roslyn, and St Clair. Conversely, areas like South Dunedin and some particularly steep-contour locations saw greater-than-average reductions,” Mr Gibson said.
Lifestyle Properties
The lifestyle market has largely mirrored the residential market, with capital value (CV) decreases of 5 to 10% relative to 2022 levels, and values over the past 18 months have remained steady. Quality modern properties remain sought after, although with longer marketing periods. Older properties requiring maintenance and modernisation are being discounted by purchasers in line with building costs.
The lifestyle vacant-land market has been subdued in recent years, with very low building activity. By extension, there is minimal appetite for new lifestyle developments and subdivisions. The cost of earthworks and service connections is also a key factor. The average capital value of an improved lifestyle property has decreased by 4.5% to $1,102,378, while the corresponding land value for a lifestyle property decreased by 5.7% to $658,385.
Commercial and Industrial Properties
There are 2,676 commercial and industrial assessments within Dunedin City, with commercial and industrial property capital values showing average increases of 1.20% and 4.30% respectively since QV’s last revaluation in 2022. During the same period, land values increased by an average of 1.70% for commercial and 2.0% for industrial, compared to their 2022 land values. The Central Business District retail and office sector has experienced higher vacancy levels, along with a higher Official Cash Rate than in 2022. This has led to higher-than-expected yields for investors and minimal rental growth. Overall, this has resulted in a slight decrease in commercial capital values of -1.50% and land values of -2.0%.
Suburban commercial properties are faring better, with minimal vacancies and stronger rental growth observed from a lower base level. The greatest increases in capital values were noted in Mosgiel (+12.3%) and Green Island (+14.0%).
Industrial property remains investors’ preferred choice, with some strong sales for development sites noted along Hillside Road and good sales in Dukes Road North showing yields of 6.25%–6.50%. Sales volumes overall have been at lower levels than during the 2022 revaluation period.
Pastoral and Dairy Properties
Pastoral and dairy property values remain close to 2022 levels with minimal change. Low sales volumes, high-cost structures, and fluctuating commodity prices have been key factors over the past three years. Combined with ongoing legislative uncertainty, the market has not seen value growth.
Throughout 2025, rural confidence improved with higher commodity prices; however, this has not yet translated into increases in property sale prices. A key reason is the elevated cost of livestock in going-concern purchases, and farmers are acutely aware that commodity prices can drop as rapidly as they have risen.
What are rating valuations?
Rating valuations are usually carried out on all New Zealand properties every three years to help local councils assess rates for the following three-year period. They are not intended for other purposes, such as raising finance with banks or as insurance valuations.
They reflect the likely selling price of a property at the effective revaluation date, which was 1 June 2025, excluding the value of chattels. Any market changes since that time will not be included in the new rating valuations, which often means a sale price achieved today will be different from the new rating valuation.
Rating valuations are calculated using a detailed process that uses all relevant property sales in the area. A large number of properties will also be physically assessed, particularly those that have been issued building consents in the last three years.
The updated rating valuations are then independently audited by the Office of the Valuer General to ensure they meet rigorous quality standards, before the new rating valuations are confirmed and posted to property owners.
New rating values will be posted to property owners after 29 October 2025. If owners do not agree with their rating valuation, they may object by 5 December 2025.
If you’d like more information on rating valuations, head to www.qv.co.nz/about/about-rating-valuations/#, or for details on how to object to your new rating valuation, go to www.qv.co.nz/services/rating-valuations/object-rating/
