Source: Radio New Zealand
Te Ara Encyclopedia of New Zealand
Houses in holiday hotspots have increased in value significantly over the past decade – but there’s a warning for anyone daydreaming about a purchase this summer.
Realestate.co.nz data shows asking prices for properties in Albert Town, in the South Island, have lifted 225 percent over the past 10 years, from $553,500 in 2015 to $1.796 million this year.
Hahei, Coromandel houses lifted from $623,000 to $2.005m.
Russell, in the Bay of Islands, rose from an average price of $1.356m in 2015 to $3.563m in 2025.
Lake areas had delivered large price increases, too, Realestate.co.nz said.
Lake Hawea was up 199 percent over 10 years and Lake Rotoiti 175 percent. Lake Wanaka was just behind at 171 percent.
A graph showing the top 20 holiday places with the highest property price increases from September 2015 to November 2025. realestate.co.nz / screenshot
Spokesperson Vanessa Williams said the data showed how big increases could be over time,
“We all love a bit of hindsight, but these numbers are next level. If you bought in Albert Town or Hahei a decade ago, you’ve basically won the property lotto. It just goes to show sometimes the dream bach can also be the dream investment.
“While iconic destinations still hold lifestyle appeal, we’re seeing serious price gains in less expected spots, particularly around the lakes. Buyers chasing both lifestyle and long-term value gains may need to look beyond the classic beachside favourites.”
Kelvin Davidson, chief property economist at Cotality, said most people probably only day dreamed about buying a house in the places they visited over summer. They would then get back to normal life and do nothing about it.
“But some people would have no doubt acted too.
“The issue with holiday houses is that they don’t generally have the same level or consistency of cashflow as a standard rental. Yes, some will do really well on Airbnb and the likes, but the average bach purchase right now probably doesn’t stack up purely as an ‘investment’ – you’d need to factor in non-monetary benefits such as pleasure in being able to get away to your own place, as well to justify it.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
