Key Takeaways
- Over 100 suburbs in New Zealand have entered the million-dollar club in the past five years, with Canterbury seeing the most growth.
- The number of suburbs with an average property value of $1m or more has increased from 305 in January 2021 to over 400.
- Auckland’s average property value has decreased annually, but has shown a slight recovery in recent months.
- The biggest leaps into the $1m club were seen in Cardrona, Queenstown-Lakes, and Cracroft, Christchurch.
- Affordability is a major driver of growth, with areas like West Coast, Waitomo, and Southland seeing significant price increases.
Introduction to New Zealand’s Property Market
The New Zealand property market has seen significant changes in the past five years, with many suburbs entering the million-dollar club. According to analysis by OneRoof and its data partner Valocity, 130 suburbs have seen their average property value cross the $1m mark and remain there since January 2021. This trend is largely driven by rising property prices, particularly in Canterbury, where 38 suburbs have joined the million-dollar club.
Growth in Canterbury and Other Regions
Canterbury has seen the highest number of suburbs joining the million-dollar club, with 38 suburbs across metropolitan and regional areas experiencing significant growth. Other regions, such as Waikato, Bay of Plenty, Northland, and Otago, have also seen rapid price growth, with 24, 17, 13, and 9 suburbs, respectively, entering the million-dollar club. Auckland and Queenstown-Lakes dominate the list of new arrivals, with Langs Beach in Whangarei, Pauatahanui in Porirua, Tamahere in Waikato, and Oriental Bay in Wellington being the only suburbs outside of these two centers to experience significant growth.
Big Jumps into the Uppermost Echelons of the Housing Market
The analysis also identified some big jumps into the uppermost echelons of the housing market. Of the 1214 suburbs with 10 or more settled sales in the last 12 months, 41 have an average property value of more than $2m, with 9 of these suburbs having an average property value of above $3m. Five years ago, there were only 25 suburbs in the $2m-plus club, and just before Covid struck, only 14 suburbs had an average property value of above $2m, with one suburb, Herne Bay, having an average property value of above $3m.
Suburbs Falling Out of the Million-Dollar Club
On the other hand, some suburbs have fallen out of the million-dollar club. According to the OneRoof-Valocity data, 32 suburbs have fallen out of the $2m club in the last five years, with the majority being in Auckland. The sharpest falls since market peak were in Wellington, with the average property value in Karaka Bays, Kelburn, Seatoun, and Roseneath tumbling by more than $590,000. Additionally, 152 suburbs, mostly in the Wellington Region, have seen their average property value drop below $1m since market peak.
Current State of the Property Market
The latest OneRoof-Valocity house price figures point to a sluggish summer for much of the market, with the nationwide average property value up by just 0.6% to $964,000 in the three months to the end of January. This is slightly below where it was in January 2025 and January 2024, and 12% below its peak value of $1.09m four years ago. However, some regions, such as West Coast, Waitomo, and Southland, have seen significant price increases, driven by affordability.
Regional Variations in Property Prices
Regional variations in property prices are also notable. Dunedin was the country’s best-performing major metro for price growth, with the city’s average property value up by 2.9% ($19,000) to $681,000 in the last three months. Hamilton’s house values were similarly buoyant, rising by 2.3% ($18,000) over the same period to $818,000. Annual growth was strongest in neighboring Queenstown-Lakes, with the wealthy enclave’s average property value rising by 4.1% ($83,000) to $2.117m on the back of rising demand, low stock, and renewed interest from foreign buyers.
Conclusion
In conclusion, the New Zealand property market has seen significant changes in the past five years, with many suburbs entering the million-dollar club. While some regions, such as Canterbury and Queenstown-Lakes, have seen significant growth, others, such as Auckland and Wellington, have experienced declines. Affordability remains a major driver of growth, with areas like West Coast, Waitomo, and Southland seeing significant price increases. As the market continues to evolve, it will be interesting to see how these trends play out in the coming years.
