The average value of New Zealand homes was $953,850 at the end of January, down by almost $90,000 from its peak, according to the CoreLogic House Price Index.
It shows average values in most parts of the country are continuing to decline, with the national average dwelling value having fallen by $89,411 (-8.6%) since it peaked at $1,043,261 in March last year.
The biggest fall over that period was in the Wellington region where the average dwelling value fell by just over $200,000 to $928,349 in January from $1,128,708 in March last year.
In Auckland, the average dwelling value is down by $167,443, falling to $1,352,898 in January from $1,520,341 in March last year.
The figures also suggest that the recent slide in property values is yet to hit the bottom, with the national average value declining by another $2533 between December and January.
According to CoreLogic, the annual rate of decline in average property values is now the biggest it has been since 2009 in the wake of the Global Financial Crisis.
CoreLogic NZ property economist Kelvin Davidson said it was no surprise that property values continued to fall in January.
"Some green shoots of optimism had started to emerge in September and October last year on the back of a view that mortgage rates may have been at or close to a peak, leading to some slightly stronger offers being made around that time," Davidson said.
"But then in November the Reserve Bank released its gloomy outlook for both the economy and inflation for 2023, which was always likely to impact property values in the following few months," he said.
The table below shows average dwelling values in all urban districts throughout New Zealand and their percentage change over three and 12 months.
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| CoreLogic NZ House Price Index | ||||
| Three Months to January 2023 | ||||
| Territorial authority | Average current value | 3 month change % | 12 month change% | |
| Far North | $707,961 | 1.2% | 5.8% | |
| Whangarei | $796,205 | 0.8% | -4.0% | |
| Kaipara | $866,310 | 0.2% | -3.0% | |
| Auckland - Rodney | $1,312,821 | -1.6% | -5.8% | |
| Rodney - Hibiscus Coast | $1,214,910 | -2.8% | -9.3% | |
| Rodney - North | $1,392,540 | -1.1% | -3.4% | |
| Auckland - North Shore | $1,500,697 | -1.5% | -10.2% | |
| North Shore - Coastal | $1,720,330 | -1.3% | -9.9% | |
| North Shore - North Harbour | $1,445,258 | -1.8% | -9.2% | |
| North Shore - Onewa | $1,208,516 | -1.1% | -12.2% | |
| Auckland - Waitakere | $1,066,822 | -2.2% | -8.3% | |
| Auckland - City | $1,580,206 | 0.4% | -7.2% | |
| Auckland City - Central | $1,321,942 | -0.7% | -6.1% | |
| Auckland City - Islands | $1,690,018 | 0.7% | -2.4% | |
| Auckland City - South | $1,427,745 | 0.6% | -8.1% | |
| Auckland_City - East | $1,981,072 | 0.8% | -8.3% | |
| Auckland - Manukau | $1,203,363 | -1.4% | -9.2% | |
| Manukau - Central | $920,867 | -2.7% | -13.3% | |
| Manukau - East | $1,496,994 | -1.2% | -9.5% | |
| Manukau - North West | $1,053,527 | -1.0% | -7.0% | |
| Auckland - Papakura | $956,111 | -4.6% | -8.0% | |
| Auckland - Franklin | $932,675 | -4.9% | -9.3% | |
| Thames Coromandel | $1,209,128 | -2.8% | 6.5% | |
| Hauraki | $641,779 | -1.8% | -5.5% | |
| Waikato | $785,419 | 1.1% | -5.1% | |
| Matamata Piako | $726,854 | -0.7% | 2.8% | |
| Hamilton | $833,809 | -1.2% | -8.2% | |
| Hamilton - Central & North West | $786,599 | 0.5% | -7.8% | |
| Hamilton - North East | $1,025,596 | -1.8% | -9.0% | |
| Hamilton - South East | $765,246 | -1.5% | -8.0% | |
| Hamilton - South West | $738,225 | -1.2% | -7.6% | |
| Waipa | $880,959 | -0.5% | -3.3% | |
| Otorohanga | $521,203 | -12.7% | -4.7% | |
| South Waikato | $455,205 | -1.8% | -2.0% | |
| Waitomo | $378,089 | -3.6% | 3.7% | |
| Taupo | $859,255 | -1.8% | 3.0% | |
| Western BOP | $1,014,311 | 2.1% | 1.6% | |
| Tauranga | $1,078,251 | 0.3% | -7.6% | |
| Rotorua | $679,913 | -0.5% | -4.9% | |
| Whakatane | $720,348 | -1.7% | 0.1% | |
| Kawerau | $425,284 | 5.6% | 4.7% | |
| Opotiki | $514,190 | -10.6% | 0.3% | |
| Gisborne | $645,292 | 2.3% | 0.4% | |
| Wairoa | $421,818 | 7.0% | -5.0% | |
| Hastings | $790,450 | -2.8% | -12.0% | |
| Napier | $792,195 | 0.4% | -10.9% | |
| Central Hawkes Bay | $587,345 | -3.9% | -7.2% | |
| New Plymouth | $727,112 | -1.0% | 2.0% | |
| Stratford | $506,172 | 3.3% | 6.5% | |
| South Taranaki | $434,911 | -3.5% | -2.7% | |
| Ruapehu | $382,134 | -3.6% | -7.3% | |
| Whanganui | $523,123 | 0.3% | -6.7% | |
| Rangitikei | $457,257 | 2.1% | -9.7% | |
| Manawatu | $632,212 | -0.9% | -6.2% | |
| Palmerston North | $656,707 | -2.8% | -12.9% | |
| Tararua | $436,954 | -2.5% | -6.5% | |
| Horowhenua | $599,339 | 1.4% | -9.8% | |
| Kapiti Coast | $863,678 | -3.3% | -13.1% | |
| Porirua | $843,406 | -2.7% | -16.6% | |
| Upper Hutt | $751,723 | -4.1% | -21.6% | |
| Lower Hutt | $804,486 | -2.2% | -19.1% | |
| Wellington City | $1,052,252 | -3.6% | -17.4% | |
| Wellington - Central & South | $993,851 | -3.4% | -16.3% | |
| Wellington - East | $1,185,780 | -1.6% | -15.2% | |
| Wellington - North | $1,003,876 | -2.9% | -17.8% | |
| Wellington - West | $1,174,519 | -6.9% | -20.9% | |
| Masterton | $598,326 | -0.8% | -11.5% | |
| Carterton | $661,656 | -2.8% | -8.8% | |
| South Wairarapa | $829,134 | -0.7% | -7.3% | |
| Tasman | $821,055 | 0.1% | -4.2% | |
| Nelson | $806,463 | -1.2% | -6.5% | |
| Marlborough | $725,297 | 0.4% | -0.5% | |
| Kaikoura | $641,654 | 1.1% | 4.0% | |
| Buller | $319,502 | 1.4% | 4.9% | |
| Grey | $360,381 | 2.3% | 7.3% | |
| Westland | $395,797 | 1.5% | 9.9% | |
| Hurunui | $609,016 | -1.4% | 7.8% | |
| Waimakariri | $712,775 | -1.5% | 5.6% | |
| Christchurch | $743,659 | -1.5% | -1.0% | |
| Christchurch - Banks Peninsula | $796,234 | 1.0% | 0.5% | |
| Christchurch - Central & North | $849,445 | -1.3% | -1.7% | |
| Christchurch - East | $581,042 | -0.9% | 0.9% | |
| Christchurch - Hills | $1,028,407 | -2.1% | 2.0% | |
| Christchurch - Southwest | $707,566 | -1.6% | -2.8% | |
| Selwyn | $829,474 | -1.2% | -2.3% | |
| Ashburton | $531,641 | 0.2% | 5.0% | |
| Timaru | $518,437 | 1.2% | 4.8% | |
| MacKenzie | $711,288 | 0.0% | 3.4% | |
| Waimate | $422,151 | -0.4% | 5.2% | |
| Waitaki | $485,116 | -1.6% | 1.2% | |
| Central Otago | $764,806 | -0.7% | 1.3% | |
| Queenstown Lakes | $1,680,991 | -0.2% | 8.3% | |
| Dunedin | $643,212 | -0.3% | -10.0% | |
| Dunedin - Central & North | $655,456 | -0.9% | -10.3% | |
| Dunedin - Peninsular & Coastal | $592,783 | -2.0% | -9.6% | |
| Dunedin - South | $608,905 | -0.5% | -12.0% | |
| Dunedin - Taieri | $681,742 | 1.2% | -8.7% | |
| Clutha | $390,742 | -0.3% | -3.3% | |
| Southland | $489,794 | -1.0% | 4.5% | |
| Gore | $415,763 | 5.7% | 9.5% | |
| Invercargill | $464,118 | 1.4% | -2.3% | |
| Auckland Region | $1,352,898 | -1.0% | -8.2% | |
| Wellington Region | $928,349 | -3.2% | -18.1% | |
| Main Urban Areas | $1,059,495 | -1.1% | -9.3% | |
| Total NZ | $953,850 | -1.1% | -7.2% | |
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85 Comments
That table is from March 2022...?
I think core logics data is from then too
And it shows massive price growth of 20% plus for the preceding 12 months?
Ooops. Thanks FE. We've fixed it now.
Cheers
When the average value of house in a country has gone above a million when average couples earnings are around 100-120k in the country, there is something very wrong in that society.
No we are not sliding or down in real terms. We are still very inflated in house prices and totally not in touch with reality.
If we have to become a healthy society again in which families can spend on their well-being, children and education, then the price of houses need to come down a lot. The old greed has to give way to better living for every one.
Chippy didn’t get that memo :(
Have you heard the stories of lotto winners that become poor again or worse still bankrupt.
Money management is the key. Its not the size that matters its how you use it
Oh yes it's as simple as money management...
If you find that simple you're either very wealthy or very poor
It’s a ridiculously foolish thing for HW to say. Completely out of touch.
Money management requires basic arithmetic. Obviously a bridge too far for pennywise.
Teach basic money management at school level, it's the best investment we can put into our kids.
Yes it is Jesse, glad you realise that.
You're right on the money, Yvil.
Literacy and numeracy should be top priority - but based on the offerings I read here each day, standards are slipping at an alarming rate.
TTP
In part. Money management only works on what you have.
- Poor money management will always see you do worse than someone else with the same income.
- Poor money management is not what stops a single income minimum wage worker from buying a house in Auckland.
Very well put
My girlfriends have always said that to me HW2, nothing to do with money tho.
Yes a bit naughty of me to borrow the statement. 😉
You have to be joking. Two people on 70k is 108k post tax.
Do some math of the rent + car + fuel + food +insurance for 2 people, and then calculate them saving 20% for a deposit (800k house) 160k.
4x income mortgage would put us at 560k mortgage, so scrap that idea, 800k house is not affordable. 680k is new affordability.
Even if able to get a house in a town/city that will keep you both at 70k pretax or more with a home at 680k, mortgage (560k) repayments are 41k a year + 3k rates = 44k. Leaving 56k for utilities, rates, food, fuel, car, everything else.
And that's on a 30 year mortgage. Total repaid at current rates $1,234,800, on a 680k purchase.
Reference living 25 minutes drive from Mount Maunganui, outskirts of Papamoa, 775k for a tiny home on a crowded st.
To conclude, a couple at 70k a year each, working hard to save 20% for a house can barely afford a tiny home on the outskirts of a small NZ city, even if they can afford repayments, bank lending at 4x their income prevents them from it.
How much of the older generation blindly don't see issue with this is a comedy show.
Declining birth rates and rising crime are 100% related to housing affordability in this country.
But hey, it's the fault of our own for poor money management and eating avocado on toast.
Very well said. Nothing like numbers to illustrate your point. Home ownership for young couples currently relies on the bank of mum and dad or support from trust funds. Stealing the dreams of the young is a crime in my eyes. What to do about it though? We need a reset of our values in this country with regard to housing accessibility and affordability for all citizens. The doctrine of extracting income from shelter needs to end to be replaced with decent housing as a human right. Which has to involve the government unfortunately and the political will to do so from all sides of the debate. Perhaps the next rising generation will bear enough scars to force change. Certainly many I speak to are thinking along those lines.
DTi and Land tax will be getting my vote in 23.
Tax capital gains on property just like all other assets, stocks, crypto etc.
Excluding it has created a speculative tax break haven for any investor.
In return, lower income tax rates or raise tax bracket ranges.
A level playing field in terms of investment potential would level out property. If I knew I could get a far better return on my money in another asset and be taxed the same, why on earth would I go heavy on property.
21 Trillion,
Gosh, someone speaking sense on property-you will be labelled as being anti-property-but I am sure you can cope with that.
Of course the NZ property market is absurd/obscene, though I must admit that I have profited from it. I spent my working life in the financial market in the UK and dealt regularly with CGT and IT( Inheritance Tax) issues. As I have said before here, nobody liked them, but almost all accepted that they were a necessary part of the tax system. Frankly, the absolute antipathy of the property owning class here to CGT is down to selfishness pure and simple. Second properties should be subject to tax on the real( inflation-linked) profits, but it's not going to happen any time soon.
To add insult to injury, a lot of what we build is crap.
The ones that need the management are the ones that allowed house prices to increase to approx. 8x median income from 3x, without adding any further amenity value.
As you say, why would you need twice the size, when you shouldn't need to, and get no more fun out of it?
Would be interesting if we could also factor in houses that haven’t sold or been withdrawn from the market…
Fantastic long may it continue.
Another 25% would be great.
Keep saving young New Zealanders your time will come.
My reckoning stick says another 15-20% and flat for a few years, if the RBNZ keeps rate rising and rates high. Which would be down 30-45% from the peak. Have already told a bunch of young people at work to hold off buying for another 6 months at least, they will be saving money two ways. A couple of them were thinking seriously about dipping in.
The number of built townhouses on the market and sections now appearing that were in some stage of design or consent is staggering. We are building and in our subdivision about 30% of the sections are now for sale, there were zero for sale 6 months ago. More than half already have some sort of design on them, which likely shows banks have pulled funding.
Adam B NZ | 10th Jul 19, 3:30pm
TTP - I'm not buying yet, I am waiting. The Auckland market is holding up better than I expected but given the state of the Global economy I think there is potential for more downside to come. There is still a small chance it could go the other way though... So yeah, ill be buying halfway through the next storm if I can time it right. If I'm wrong ill still do well off my existing investments so not fussed.
Alert: Its halfway through now
Where are you building Blobbles?
Lets just say 6 months ago, this page had one to five listings:
https://www.trademe.co.nz/a/property/residential/sale/wellington/kapiti…
Now there are 45 results. And Kapiti isn't exactly a massive population centre.
Visiting Christchurch, wow, the number of empty sections that obviously had townhouses planned that are now being sold, was huge. And the number of sections in the city reflects this, 212. Also there are 474 townhouses down there for sale, which was also obvious walking around. Most of them are new/recent builds: https://www.trademe.co.nz/a/property/residential/sale/canterbury/christ…
Really? Can i ask where you are?
In Oz a lot of building companies are folding. I wonder if we will see that in NZ.
Of course we will. And already in 2022 a lot of building companies have gone into liquidation.
I think reality is only now setting in for a whole lot of people that their mortgage is now a massive boat anchor weighing them down. Our neighbours are a young couple who purchased in 2019 and have a second baby on the way. They are selling and moving in with family as they see the mortgage becoming unaffordable when down to one salary. Apparently all their friends have massive mortgages and don’t know what they are going to do when their fixed rates reset over the coming months. That scale of what’s about to hit is massive.
Yep. The numbers aren’t large but they aren’t insignificant either. They are big enough to have some significant influence.
I wonder what the average price of Auckland coastal properties is worth...as of today.
Still slipping.
schadenfreude
and envy
Yvil,
Envy of what precisely?
too soon
Nice view and erosion proof, aka back up the hill a bit, will more or less be the same (subject to market swings of course). Those on cliff front, especially those with a lot less cliff, will have real issues. If you have yellow or red sticker...
You think so average man? You may be right, perhaps red sticker properties have a problem, who knows?
Yes. Aware of a slip over east Auckland that rendered a bunch of waterfront houses inhabitable, and have require $500k plus over insurance to retain and remediate. Unusable until complete, but still expected to pay high rates due to position. That's some significant negative cashflow.
I'm also aware that my hill top house in Sumner, Christchurch, which was red stickered after the EQ, "had issues" as you put it. The hassle, is dealing with the insurance company fo the house, and the Crown for the land, but financially these people will be fine.
more people have a water view now.
And a pool.
council will be around to demand a fence soon. They are just outside ticketing your car.
Some might be in breach of the district plan as site has 90% coverage from buildings and none of the minimum outdoor living space requirements are met.
Those that bought recently are probably under water now.
hard to predict..a friend left Edgecumbe after the 87 quake for the settled calm of Christchurch....then after their quake to Ak, at least thats safe....nah...maybe Taupo...oh but wait its rumbling deep there as well...NZ is just a giant roulette wheel...
Corelogic HPI is tomorrow morning according to the economic calendar, as is Barfoots sales numbers and Building consents.
Predicting Down, Down, and Up.
Wouldn't it be Down, Down and Down? Who is rushing out to get consents in this environment other than Kaianga Ora?
Lots of speculators who couldn't sell the old dunger for the entire development profit have decided to do the development themselves. They dont know enough to stop, or have enough money to bat onward's. Accordingly many of them are still pushing forwards. Add in the development projects for investors to rinse their taxable income into equity..
Developers wanting to beat the new insulation standards coming in to force in Maay.
Exactly, that was another reason for my ‘May Day’ call on the economy. Watch consents crash after that.
I imagine very stressfull if you where needing to sell and now have damage that may take a year to resolve.
Its ok...your bank will support you in a declining market...right?
Entirely possible you could lose 10% or more waiting for repairs....
And even more should a property search in due diligence comes up with flooding issues... New buyers kinda need to be able to get insurance on properties too and anything that prevents them doing that is a roadblock.
Someone's had a duplicate post fail there when publishing...
So if market is "expected" to fall more the best advice to FHBers is Be Slow
Fairly surprised that Wellington still sits so low, has shown the most significant drops of any region. Wellington has not seen any over-supply of townhouses or similar, maybe just seen the realization that the wages necessary to service a mortgage in an Upper Hutt home do not match to the living standards of Upper Hutt neighbourhoods.
“Wellington has not seen any over-supply of townhouses”
uninformed comment. It’ exists already and will get worse with developments nearing completion. Apartments also.
The values/price index proves you are correct, the oversupply exists. It is simply tricky to compare Wellington developments to what is happening around the country where there seems to have been available space and the confidence to embark on large cookie-cutter 'mini-suburb' creation recently. Wellington continues to only support infill and mid-sized apartment block development, with some real oddities such as townhouses being created in the CBD.
Beyond the bad weather (best January ever?) I just wonder if there is some interesting story where Wellington investors have been overconfident, tied to government workforce expectations or the limits to growth and development in the region.
I know Wellington quite well. I was born there and lived there till I was 21. My dad is in a retirement village, sold his house about two years ago.
The feeling I get is that the big growth in well paid bureaucrat roles was definitely part of the boom. I think there was also a sense that Wellington prices were way too low (probably a little bit of truth to that) that the boom was just bringing them up to where they should be.
And related to all that was the general housing bubble frenzy-like mentality.
Wellington has always been more volatile than Auckland. For example, there was a significant slump in the early 2000s, when property in Auckland was just beginning to take off.
It doesn’t have the population growth of Auckland, nor the same level of international interest. And generally speaking businesses have been gravitating away from Wellington over the past 30 years.
When talking about Wellington, you need to consider whether you are talking about the City or the Region.
Most of the construction in the Region has happened in Hutt Valley and Porirua and a lesser extent Kapiti.
Consents per 1,000 population are City 5.5, Lower Hutt 10.9, Upper Hutt 7.
Most of the construction in the City has been apartments, but the fall in pricing there is driven more by the reversal of availability and cost of credit, rather than sudden oversupply.
Wellington has always been more volatile than Auckland.
Another uninformed comment . Quite the opposite. Given that you only lived in Wellington as a child/ youth and have lived elsewhere for what I am guessing is an extended period I would like to know where you get your repeated authority on the Wellington market , let alone others that you also continually trumpet opinions on.
I have plenty of family there, including an uncle who works in property development. I also do a little bit of development advisory stuff in Wellington. So I think I am pretty informed.
So why do you say Wellington is less volatile than Auckland? It’s had several significant dips over the last 30-40 years, more than Auckland.
Granted Auckland has risen a lot more aggressively, but I would define volatility as being more about ups and downs, than about aggressive price hikes.
Over to you, Mr Ed. Neigh!!!
So why do you say Wellington is less volatile than Auckland? It’s had several significant dips over the last 30-40 years, more than Auckland.
more misguided twaddle. Name the significant dips in Wellington , with facts. Check also the comparison in both city's value rises and declines pre and post the share market and property crash1984-1991. You are either making up and/or parroting misinformation.
.Suggest you should change you nom de plume to “ I reckon” . It would be more fitting . And maybe stop living all day on this forum . Get a box to stand on and go down to your local park or perhaps get back on talkback radio for the day to day company you obviously seek
You will see a real drop in value of property when redundant Bureacrats hit market later this year
Depends which party are in power. It’s looking like it could be a close election.
But yes if National win there’s a good chance they will take the knife to the bureaucracy, which is something I would welcome. Extremely bloated with low levels of competency.
# of Bureaucrats is proportional to house prices? Slashing Wellington numbers by -25% will only take it back to pre covid levels..
90% of them will just transition from civil serpent to consultant at twice or more the hourly rate.
when redundant Bureacrats hit market later this year
Who would buy a bureaucrat? I also couldn't find a category for them on Trade Me.
Upper Hutt seems to have a lot of new houses on the market. I notice that some are now being advertised as Kiwibuild. For several years there were hardly any Kiwibuild homes, but after the Kiwibuild prices rose last year, I suspect many developers are not looking at that as an easy aveune for sales. I don' think they need to reaise the Kiwibuild price based on house prices now crashing 20% + in some areas.
The best investment right now is to buy a chainsaw, as mature trees come crashing down in the well-heeled and established suburbs of Auckland. Arborists will be difficult to contact
Floods to increase as mature trees removed to make way for more concrete.
technically it is infill housing with no infrastructure drainage upgrades to match increasing density. overland flow drainage is an exceptionally limited tool around housing especially when the local drains and creeks are blocked with debris and green waste... so many people claim trees are always must be good, especially natives like cabbage trees /s but they then forget and underfund clearing drainage blockages caused by them that are even more key for immediate drainage support to prevent flooding.
Building a house still going up.
Interesting that in US, building material prices have dropped back after the highs during the pandemic. Yet in NZ building material prices are like a ratchet and only seem to rise. Guessing due to teh lack of competition.
Builders and staff still need to ser ice a mortgage or rent. The ponzi underpins all inflation.
House price’s will continue to fall until it is affordable for average wage couple to purchase a home. In Auckland it at 1350k only the top 5% of earners could afford to by average house from scratch. It is just so obvious a massive bubble which has just started to deflate. If wage growth climbed 8% each year from next 8 years these average prices could be affordable but it’s more likely the house price’s will accelerate in it downward path over next few years then level off when wages rise with inflation.
beyond optimistic to think affordability will come back for this generation or even the next. It can take a short time to take properties out of the market but a much longer time for investors and ever increasing property management companies to release those same properties given the long term investment profile. Sort of a dead mans boots scenario many of these investment properties will take decades to come back... unless there is a severe drop in population or natural disaster that means you will not want to buy many of the available properties (and may be prevented from doing so due to severe defects that are hazardous to human health).
Dp
I don’t know if I would ever buy in Thorndon. Lovely suburb, and central, but riddled with fault lines. If you are near to the hills there’s also limitations in terms of sunshine, and potential slips…
Despite all that, it’s probably my favourite Wellington suburb. Full of character and the botanic gardens are amazing.
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