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New Zealand's property market shows significant price variations by location and property type, with apartments commanding double the price per square meter compared to houses.
As of September 2025, the New Zealand property market presents opportunities for both owner-occupiers and investors, with falling interest rates improving affordability and regional areas offering strong rental yields.
If you want to go deeper, you can check our pack of documents related to the real estate market in New Zealand, based on reliable facts and data, not opinions or rumors.
The average price per square meter in New Zealand varies dramatically by property type and location, with apartments at NZD14,083/m² and houses at NZD7,161/m² nationally.
Auckland leads in pricing at NZD9,018/m² for houses, while Southland offers budget-friendly options at NZD3,426/m², and mortgage rates are expected to decrease to around 5% by end of 2025.
| Region | Price per m² (Houses) | Market Status |
|---|---|---|
| Auckland | NZD 9,018 | Most expensive city |
| Otago (Queenstown area) | NZD 15,966 | Luxury market leader |
| Canterbury | NZD 4,687 | Moderate pricing |
| Southland | NZD 3,426 | Most affordable |
| Wellington | Above national average | Capital premium |
| Rural areas | NZD 3,000-7,000 | Budget-friendly |
| National average (Apartments) | NZD 14,083 | Premium pricing |
What's the current average price per square meter in New Zealand?
As of September 2025, the average price per square meter in New Zealand stands at NZD14,083 for apartments and NZD7,161 for houses.
These figures represent median values across the country and highlight a significant price difference between property types. Apartments command roughly double the price per square meter compared to standalone houses due to their typically more central locations and higher construction costs per unit area.
The national averages mask considerable regional variation, with major cities like Auckland and Wellington commanding premium prices. Larger houses can exceed NZD12,900 per square meter depending on their size, location, and quality of construction.
It's something we develop in our New Zealand property pack.
How does the price vary depending on property type?
Property type creates the most significant price variation in New Zealand's real estate market, with apartments consistently commanding premium per-square-meter pricing.
Apartments average NZD14,083 per square meter nationally, while standalone houses average NZD7,161 per square meter. This near 100% price difference reflects several factors including land availability, construction costs, and location premiums.
Townhouses typically fall between these two categories, though specific pricing data varies by region. Larger houses can reach NZD12,900 per square meter or higher when they're smaller in total floor area but located in premium neighborhoods.
The price differential also reflects market demand patterns, with apartments often located in central business districts or desirable urban areas where land values are highest.
What are the price differences between major cities and rural areas?
Major cities command significantly higher prices than rural areas, with Auckland leading at NZD9,018 per square meter for houses.
Wellington maintains prices above the national average, with median house prices around NZD760,000, though specific per-square-meter breakdowns vary. The Otago region, including Queenstown and Dunedin, reaches the highest prices at up to NZD15,966 per square meter for houses.
Mid-tier regions include Canterbury at NZD4,687 per square meter, while budget-friendly areas like Southland offer houses at just NZD3,426 per square meter. Rural and provincial areas typically range from NZD3,000 to NZD7,000 per square meter, with some remote districts pricing even lower.
This price gap reflects economic opportunities, infrastructure quality, and lifestyle amenities available in major urban centers versus rural locations.
Which neighborhoods are the most expensive and which are up-and-coming?
| Area | Typical Price | Market Status |
|---|---|---|
| Pauanui, Coromandel | NZD 1.51 million | Luxury hotspot |
| Central Auckland | NZD 990,000 median | Most expensive urban |
| Queenstown-Lakes, Otago | NZD 1.2+ million | High-end resort area |
| East Tamaki, Auckland | NZD 700,000-1 million | Up-and-coming |
| South Auckland Suburbs | NZD 700,000-1 million | Growth potential |
| Gisborne Central | NZD 545,000-800,000 | Accessible option |
| Wairoa District | NZD 156,500 | Most budget-friendly |
Can you give real examples of recent purchase prices?
Recent sales data from August 2025 provides concrete examples of current market pricing across different regions.
In Wanaka, a 4-bedroom house on Chalmers Street sold on August 15, 2025, representing upper-quartile pricing for the area. A 2-bedroom townhouse in Albert Town sold on August 7, 2025, though specific prices weren't disclosed.
For broader context, Auckland's median sale price in June 2025 was NZD990,000, while Southland's median reached NZD502,500. These figures demonstrate the dramatic regional price differences across New Zealand's property market.
Central Auckland properties regularly exceed the million-dollar mark, while rural Southland offers opportunities well below the national median.
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How does the total purchase cost break down?
Total purchase costs in New Zealand are relatively moderate compared to many international markets, with buyers facing approximately 1.6% to 1.9% in fees.
Buyer costs include notary fees of 0.10% to 0.40% and legal fees around 1.5% of the purchase price. Sellers typically pay real estate agent fees of 3.5% to 4.0% plus 15% GST on those fees.
The total roundtrip transaction cost ranges from 5.1% to 5.9%, making New Zealand relatively affordable for property transactions. Importantly, New Zealand doesn't impose transfer taxes or stamp duties on most residential transactions.
GST at 15% only applies to new properties or those sold by developers, not to existing residential properties sold between individuals.
What are current mortgage rates and their impact on affordability?
As of September 2025, New Zealand mortgage rates are in a favorable downward trend, improving affordability for buyers.
The floating rate averages 8.55%, while fixed rates are more attractive at 4.75% for both one-year and two-year terms with Westpac offering the lowest rates. The average rate for existing mortgages sits at 5.66%.
A typical NZD575,000 mortgage at 5.66% requires monthly payments of approximately NZD3,323. Rates are expected to decrease further to around 5% by the end of 2025, which will significantly improve affordability for new buyers.
This downward trend in interest rates is creating a more favorable environment for property purchases throughout 2025.
What are the best value choices for personal living?
For personal living, the best value opportunities lie in up-and-coming Auckland suburbs and selected provincial areas.
East Tamaki, Mt Wellington, Papatoetoe, and Otahuhu in Auckland offer excellent value due to infrastructure improvements and relative affordability compared to central areas. These suburbs benefit from transport connections and development plans that enhance their long-term livability.
Provincial options include Waikato, Hawke's Bay, and Gisborne Central, which provide affordable housing with good amenities. Wairoa District and various Southland locations offer the most budget-friendly options for those prioritizing low purchase prices.
These areas combine reasonable pricing with good transport links, making them practical choices for owner-occupiers seeking value.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are rental returns for short-term versus long-term rentals?
New Zealand's rental market offers a national gross yield median of 4.52%, with significant regional variations favoring smaller cities and towns.
The highest rental yields come from Southland at 5.76% and Otago at 5.65%, while major cities like Auckland and expensive areas like Queenstown-Lakes offer the lowest yields due to high property prices.
Short-term rentals can provide higher returns, particularly in tourist destinations like Queenstown and Wanaka, but come with increased management costs, seasonal vacancy risks, and regulatory considerations. Long-term rentals offer more stable returns averaging 4% to 5% annually.
Provincial areas consistently deliver the best rental yields for investors, making them attractive for buy-to-let strategies focused on steady income rather than capital appreciation.
Which areas have the best potential for capital gains?
For capital gains potential, focus on Otago (particularly the Queenstown area), East and South Auckland suburbs, and emerging areas in Waikato and Hawke's Bay.
These regions benefit from sustained demand, infrastructure development, and economic growth drivers that support long-term price appreciation. Otago's tourism economy and Auckland's employment opportunities create fundamental demand for housing.
The current market shows 4% price growth forecast for 2025, rising to 6% in 2026 as interest rates continue to fall. Well-selected properties in up-and-coming suburbs could outperform these averages over 5 to 10 years.
It's something we develop in our New Zealand property pack.
How have property prices changed recently?
New Zealand property prices remain 13% below their January 2022 peak, creating opportunities for buyers entering the market.
Over the past year, price movements vary dramatically by region, with West Coast properties up 35.5%, Otago up 15%, and Southland up 14.5%, while Auckland declined 3.4%. This regional divergence reflects local economic conditions and demand patterns.
Looking at the five-year trend, prices increased substantially from pre-pandemic levels but have declined 17% over the past three years, particularly in Auckland and Wellington. This correction has improved affordability in major cities.
The national average currently shows flat or slightly declining prices since 2024, positioning 2025 as a potential entry point for buyers.
What are the price forecasts and how does New Zealand compare globally?
New Zealand property price forecasts show modest growth returning after recent corrections, with 3.8% to 4% growth projected for 2025.
The medium-term outlook suggests 5.1% to 6% annual growth for 2026-2027 as the market recovers and interest rates continue easing. The 10-year outlook expects steady gains driven by population growth and urban demand, though major cities will likely remain expensive.
Internationally, New Zealand cities remain pricier than many comparable Australian cities (except Sydney and Melbourne) and most North American or European regional centers. However, they're significantly cheaper than Hong Kong, Singapore, or London.
This positioning makes New Zealand attractive for international buyers seeking developed market stability without the extreme pricing of global financial centers.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
For personal use buyers, targeting up-and-coming Auckland suburbs like East Tamaki and Mt Wellington, or provincial areas like Gisborne Central and Hawke's Bay, offers the best combination of value and future growth potential.
Investors should focus on regional towns in Southland and Otago for high rental yields, while those seeking capital gains should consider tourist areas and infrastructure-growth suburbs with strong fundamentals.
It's something we develop in our New Zealand property pack.
Sources
- Properstar New Zealand House Prices
- Global Property Guide New Zealand
- OneRoof Hot 100 Suburbs 2025
- MPA Magazine Top 100 Suburbs
- Trade Me Property Market Analysis
- Bayleys Gisborne Market Report
- Ray White Wanaka Sold Properties
- New Zealand Property Taxes and Costs
- Opes Partners Interest Rates
- QV House Price Index July 2025