Source: Quotable Value (QV)
New Zealand’s housing market remains firmly on buyers’ terms, with property values continuing to soften through August.
Our latest QV House Price Index shows residential property values reduced by 1.9% nationally over the three months to the end of August – the housing market’s largest quarterly decline in two years.
The average Kiwi home is now worth $894,977, down 1.7% since the start of the year and 1.3% less than the same time last year.
QV national spokesperson Simon Petersen said the latest figures showed buyers remained firmly in control as we head into spring.
“Buyers have plenty of choice, they’re taking their sweet time, they’re negotiating hard, and they’re prepared to walk away if the numbers don’t stack up. That’s putting downward pressure on property values.
“But we’d still characterise it more as a slow deterioration rather than a sudden correction. The market has been flat to gently falling for some time, and those smaller movements are now starting to add up in some parts of the country.”
That weakness is especially evident in our largest cities. Auckland’s average home value reduced by 2.7% this quarter – its largest quarterly decline since August 2024 – while Wellington recorded a 3.5% reduction, its largest quarterly decline since March 2023.
“The overall direction is clear, but the pace of change still varies considerably from place to place. Some of the more resilient markets have also lost momentum throughout the winter months,” Mr Petersen said.
Even Christchurch, one of the country’s more resilient housing markets this year, slipped 0.5% – its first negative quarterly result in 11 months.
Across the main urban areas, home values fell furthest this winter in Gisborne, down 5% over the three months to the end of August. Greymouth (-3.7%) and Hastings (-2.9%) also recorded larger-than-average declines.
However, there were still a handful of pockets of growth in the lower South Island. Queenstown led the main centres with a 1% quarterly increase, while home values inched 0.1% higher on average in both Timaru and Invercargill.
With spring just around the corner, Mr Petersen said the next few months would test whether the market had any real appetite to break out of its holding pattern.
“Spring usually brings more listings and more activity, but not necessarily more competition. If buyer confidence stays where it is, vendors may simply find themselves competing harder for the same pool of cautious purchasers.
“Last week’s OCR increase is another factor for buyers to weigh up, alongside the wider economic outlook. Household budgets are still under pressure, the election is getting closer, and buyers know they don’t need to rush.
“Unless something changes that equation, we could be in for a busier spring market without much upward pressure on prices,” he concluded.
Download a high resolution version of the latest QV value map here (https://mcusercontent.com/7ea78a69a1f7991bf60632008/images/6df4144a-5bdb-d835-0eef-e499ac583986.png).
Northland
The housing market remains a mixed bag in Ranfurly Shield country.
The Far North has recorded the largest decline this year, with its average home value down 2% to $688,147. That figure is also 1.3% lower annually.
Whangārei’s average home value has reduced by 1.8% since the start of the year to $727,224, although it remains 0.3% higher than the same time last year.
Kaipara continues to stand apart, with its average home value rising 2.8% so far this year to $844,636. Annually, it is virtually unchanged, down just 0.1%.
Auckland
Residential property values have gone overwhelmingly in one direction.
Values across the Auckland region reduced by an average of 2.7% over the three months to the end of August. That compares with declines of 0.7% and 2.2% in the three months to the end of June and July respectively.
Of the Super City’s seven former local council areas, values fell furthest in Auckland City, down 3.6% to an average of $1,332,229. That figure is now 3% lower than at the start of this year and 4.5% lower than at the same time last year.
The region’s southern fringes have proven somewhat more resilient, with Franklin (-0.8%), Papakura (-1%), and Manukau (-1.8%) recording smaller quarterly declines.
QV registered valuer Hugh Robson said prices had continued to fall in most suburbs.
“Auckland’s housing market remains subdued. Stock levels are high, giving buyers plenty of choice, while there is also a large number of new-build townhouses on the market and a high volume of building consents being processed.
“That suggests elevated stock levels are likely to persist for some time yet, which should continue to keep prices low or relatively stable.”
“First-home buyers remain the largest segment of the market, while the North Shore and Rodney are among the more resilient parts of the region. Inner-city suburbs have also been relatively stable.”
Bay of Plenty
Home values are down across the Bay of Plenty this quarter – but only just in Tauranga.
Our latest QV House Price Index shows the city’s average home value reduced by 0.3% to $1,049,067. That figure is still 1.5% higher than at the start of this calendar year and 2.3% higher than the same time last year.
Rotorua is the only other centre in the region where home values remain slightly higher than they were one year ago. Its average home value reduced by 1.9% this quarter to $672,961.
“House values continue to ebb and flow across the region from month to month,” said local QV registered valuer Damian Hall.
“Activity at the entry level remains strong, particularly among first-home buyers looking at properties up to $800,000. At the other end of the market, properties over $1.1m are generally taking a little longer to sell.
“The Bay of Plenty, and Tauranga in particular, appears to be holding up relatively well compared with many other parts of the North Island.”
Mr Hall said Papamoa remained particularly active.
“Properties in Papamoa are getting snapped up pretty quickly, with modern housing stock proving particularly appealing to buyers.
“The proposed toll road and on/off ramp is also creating quite a stir locally, with some concern about what it could mean for the new retail area at The Sands. It is looking likely to proceed towards the end of this year or early next year despite a number of local petitions opposing it.”
Waikato
Residential property values continue to decline at a slow but steady rate across the Waikato.
Values reduced by 1.6% over the three months to the end of August, matching the rate of decline recorded in July. The region’s average property value is now 2.1% lower than at the start of this calendar year and 0.6% lower annually.
Hamilton is bang on the regional average. Its average home value also reduced by 1.6% this quarter to $777,752, leaving it 2.2% lower than at the start of the year and 0.6% below the same time last year.
QV registered valuer Marshall Wu said sales volumes had eased and pricing momentum remained limited.
“The property market across Hamilton and surrounding townships remains relatively stable but subdued, with conditions continuing to favour buyers due to elevated listing levels and greater choice.
“First-home buyers remain active and are benefiting from improved affordability, increased stock levels, and stronger negotiating power.
“Investor activity has become more cautious amid uncertainty around interest rates, potential property tax changes, and the upcoming general election.”
He said limited price growth was expected in the near term, with affordability constraints, cautious lending conditions, persistent inflation, global economic uncertainty, and election-related sentiment continuing to weigh on activity.
Meanwhile, across the wider region, Waikato District (3.5%), South Waikato (1.7%), Waipā (1.2%), and Matamata-Piako (0.3%) remain in the black this calendar year.
“There are some early signs of improving market conditions in Waikato, Matamata-Piako, and Waipā, where average sale prices are now above the same time last year. This may indicate the early stages of a market recovery heading into spring,” Mr Wu concluded.
Hawke’s Bay
Residential property values have weakened at a slightly faster rate in Napier and Hastings this quarter.
Our latest QV House Price Index shows Napier’s average home value decreased by 1% to $743,856 over the three months to the end of August, compared with a 0.4% decline in the three months to the end of July.
In Hastings, the average home value decreased by 2.9% to $743,579, slightly faster than the 2.3% decline reported in our previous index.
Napier has also held up better annually, with its average home value just 0.3% lower than the same time last year, compared with a 4.8% annual decline in Hastings.
Taranaki
Residential property values have decreased again in New Plymouth.
The city’s average home is now worth $707,444, down 1.7% this quarter, and 1.6% lower than at the start of 2026.
Its neighbouring districts have held up better so far this year, with average home values still sitting 3% higher in Stratford and 1.2% higher in South Taranaki.
Manawatu
Property values remain relatively flat in Palmerston North, with a slight downward drift.
The city’s average home value reduced by 0.7% over the three months to the end of August, the same slow rate of decline as in the three months to the end of July. At $626,348, it is now 1.6% lower than at the start of 2026.
Across the wider Manawatū, only Rangitīkei (1.5%) and Manawatū District (0.1%) remain in the black this calendar year.
The average home value in Whanganui decreased by 1.3% to $510,599 this quarter. That figure is now 3.9% lower than at the start of this year.
Wairarapa
Carterton is a rare green arrow in this month’s QV House Price Index.
Its average home value increased by 0.8% this quarter to $589,979 and is the only district in the wider Wairarapa region where values are a fraction higher than at the same time last year.
Masterton’s average home value reduced by 2.2% this quarter to $564,165. That figure is now 2.8% lower annually.
In South Wairarapa, the average home value is now $723,041, down 2.6% for the quarter and 3.4% annually.
Wellington
The Wellington region has recorded its weakest quarterly result in almost two years.
Residential property values reduced by 3.2% on average across the greater region over the three months to the end of August, matching the quarterly decline recorded back in September 2024.
Home values fell furthest this winter in Porirua, down 4% over the three months to the end of August.
Kāpiti Coast recorded the smallest quarterly decline, with average home values down 2.1%.
Local QV registered valuer David Cornford said market activity had been relatively soft through August.
“The market remains weak, with buyers showing more caution since the start of the Middle East conflict amid greater uncertainty and higher interest rates.
“Stock levels also remain high as we head into spring, giving buyers plenty of choice and bargaining power.”
He said first-home buyers continued to be active, while movers were less prominent and investor activity remained limited.
“The investors who are active are very yield-focused. We’re also still seeing some flipping at the lower end of the market, where poorer-quality properties are being bought cheaply, renovated to a modest standard, and then on-sold relatively quickly, generally to first-home buyers.”
Nelson/Tasman/Marlborough
Market conditions remain subdued across the top of the South Island, with buyers continuing to hold the upper hand.
Home values have fallen furthest this winter in Marlborough, down 2.2% over the three months to the end of August.
In Nelson, the average home value reduced by 1.1% to $769,114, a slightly larger decline than in our previous index. That figure is now 2.6% lower than at the start of 2026 and 1% lower than at the end of winter last year.
The average home value in Tasman reduced by 1.3% to $814,342.
QV Nelson/Marlborough manager Craig Russell said most sales activity was still occurring below the $800,000 mark, with first-home buyers remaining the most active group in the market.
“Investors are largely holding back at the moment, with many waiting to see the outcome of the election before making any big decisions.
“The lifestyle market is also sluggish, with more properties available than there is demand for them.”
He noted that vendor enquiry had started to pick up heading into spring.
West Coast
Home values have reduced once more across the West Coast.
Our latest QV House Price Index shows average home values decreased by 5.4% across the wider region over the three months to the end of August. That compares with a 4.7% decrease over the three months to the end of July.
Of the three districts that make up the region, Westland recorded the largest quarterly decline at 6.8%, taking its average home value to $489,014. Despite that, values remain 1.7% higher than at the same time last year.
Grey District recorded a 3.7% quarterly decrease, taking its average home value to $452,888. That compares with a 5% decrease in our previous index, while values are now 1.3% lower annually.
Buller recorded a 6.7% decrease over the three months to the end of August, taking its average home value to $377,381. That compares with a 4% quarterly decline in our previous index, while values are now 1.1% lower annually.
Local QV registered valuer Rod Thornton said the West Coast market had been softer since around the middle of the year.
“The statistics show the West Coast market is subdued overall, which is in contrast to 2025 and early 2026 when there were consistent value lifts and the Coast was outperforming many other districts in this regard.
“While there is a wide mix of housing types, locations, price points and value drivers across the Coast, the statistics overall are reflecting what we’re seeing on the ground.”
Canterbury
Christchurch has slipped back into negative territory for the first time in 11 months, despite remaining one of the country’s more active housing markets.
The Garden City’s average home value reduced by 0.5% this quarter to $804,850 – its first quarterly decline since September last year. Values remain 1.7% higher than at the start of this calendar year and 4.4% higher than the same time last year.
It wasn’t the only decline across the wider Canterbury region, with average home values also reducing in Selwyn (-0.4%), Ashburton (-0.8%), and Mackenzie (-1.7%).
Hurunui recorded no movement this quarter, while Waimakariri bucked the regional trend with a modest 0.4% increase.
QV South Island professional services manager Michael Tohill said homes in Christchurch were selling at a quicker rate than the national average.
“First-home buyers remain the main force in the city, with many using KiwiSaver withdrawals to help purchase their properties. Investor demand, meanwhile, continues its slow structural decline, with fewer landlords buying new residential properties.
“The overall shift is increasingly toward a buyer’s market, giving purchasers more room to choose.”
He said Canterbury’s rental market was slightly more buoyant than the relatively flat national market and looked well poised for an active spring.
“Median rents remain steady at $580 per week, still 3% higher than last year, while properties are taking an average of 19 days to rent compared with 22 days nationally, according to Trade Me listing data.
“Student-targeted rentals for the 2027 academic year have likely been driving a good share of recent activity, with searches and listings in popular university-adjacent suburbs such as Ilam, Riccarton, Avonhead and Burnside spiking by up to 50%.”
Mr Tohill said market conditions in Selwyn and Waimakariri were broadly similar.
“Selwyn building consents are holding steady, with new major stages being released and house builders reporting good forward workloads.”
Otago
Residential property values continue to slowly zig and zag across the Otago region.
On the plus side of the ledger, average home values increased by 1% in Queenstown and 3.3% in Clutha.
Moving in the opposite direction were Waitaki (-2.3%), Central Otago (-1.6%), and Dunedin (-0.8%). The latter’s average home value is now $653,120, which is still 2.7% higher than at the start of 2026.
Southland
Gore was the pick of Southland’s districts this winter.
Its average home value increased by 1.1% to $474,696 in the three months to the end of August 2026.
Invercargill was largely flat, with its average home value inching just 0.1% higher this quarter to $547,087. That’s 3% higher than at the start of this year and 7.5% more than the same time last year.
Southland District moved in the opposite direction, recording a 2% average reduction this quarter.
You can check value changes over time in your region with QV’s interactive map on www.qv.co.nz/price-index/
The QV HPI uses a rolling three month collection of sales data, based on sales agreement date. This has always been the case and ensures a large sample of sales data is used to measure value change over time. Having agent and non-agent sales included in the index provides a comprehensive measure of property value change over the longer term.