New Zealand housing: South Island gains while North Island slips

The national average home value in New Zealand fell by 0.9 percent to $890,508 in the three months ending in October, according to data released by QV.

The decline marks a slight improvement from the previous quarter, when values dropped by 1.5 percent through September. Despite this slowdown in losses, the overall market remains in negative territory.

A sharp geographic divide characterizes the current market conditions. Every major urban area in the North Island recorded a decrease in property values during the October quarter. The steepest drops occurred in Rotorua, where values fell by 2.9 percent, and Auckland, which saw a 1.6 percent decline.

In contrast, most South Island regions experienced stable or rising prices. Only Nelson and Timaru registered small falls. Christchurch values increased by 0.6 percent, while Queenstown posted the strongest growth at 2.6 percent.

Simon Petersen, a spokesperson for QV, noted that the national figure obscures the distinct performance differences between the two islands. He stated that the market is moving backward nationally, but at a slower pace than before. Petersen explained that much of the North Island remains in a holding pattern, with buyers having ample choice and little urgency to purchase.

Petersen added that specific parts of the South Island are seeing steady growth, driven by stronger local economic conditions. He pointed out that the average national home value is currently 2.2 percent lower than it was at the start of the year.

According to QV, the market would need a sharp turnaround to end the year above its starting level. However, home values in most South Island markets are already ahead of where they began, suggesting a divergence that is likely to persist through the remainder of the year.