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Thinking about buying a 3-bedroom apartment in Wellington Central? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other suburbs like Mount Victoria or Thorndon where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the New Zealand Property Pack.
Will property prices increase in New Zealand in 2025?
Yes, property prices in New Zealand are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that New Zealand remains an attractive market for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind New Zealand’s price growth are expected to persist.
Demand, especially in major cities like Auckland and Wellington, continues to outstrip supply, making significant price declines unlikely. Additionally, New Zealand's appeal as a lifestyle destination continues to attract buyers from around the world.
Signals pointing to a property price increase in New Zealand
Here are some factors suggesting prices could increase:
A continued shortage of housing supply, particularly in urban areas, is expected to persist into 2025. This lack of new developments will likely push up prices as demand remains strong.
Government initiatives aimed at increasing housing affordability and supply, such as incentives for new builds, are expected to take time to impact the market, keeping supply tight in the short term.
New Zealand's strong economic recovery post-pandemic is expected to continue, boosting consumer confidence and increasing demand for property.
The ongoing appeal of New Zealand as a safe and desirable place to live, particularly in the wake of global uncertainties, continues to attract international buyers, supporting demand.
Infrastructure improvements, such as transportation and public amenities, are expected to enhance the attractiveness of certain areas, driving up property values.
The trend of remote working is likely to continue, increasing demand for properties in lifestyle locations outside of major cities, which could drive up prices in these areas.
Signals pointing to a property price decrease in New Zealand
Here are some factors suggesting prices could fall:
Rising interest rates are making mortgages more expensive, which could dampen demand as buyers find it harder to afford homes.
Inflationary pressures are increasing the cost of living, which may reduce disposable income and limit the ability of potential buyers to enter the market.
Government policies aimed at cooling the housing market, such as restrictions on foreign buyers and changes to tax laws, could reduce speculative demand and slow price growth.
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If property prices go up in New Zealand, how much would they increase by?
If real estate prices in New Zealand were to rise in 2025, the increase would likely be between 5% to 10% of their 2024 values.
Typically, real estate in dynamic markets like New Zealand appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom home in Auckland for 850,000 NZD today, don't be surprised if it's priced between 892,500 and 935,000 NZD this time next year.
To give you a better understanding, here is a table that shows 7 types of New Zealand real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
| Type of Property | Average Price in 2024 (NZD) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
|---|---|---|---|---|
| Suburban House (150 sqm / 1,615 sqft) | NZD 900,000 | NZD 945,000 | NZD 963,000 | NZD 990,000 |
| City Apartment (75 sqm / 807 sqft) | NZD 1,200,000 | NZD 1,260,000 | NZD 1,284,000 | NZD 1,320,000 |
| Luxury Villa (200 sqm / 2,153 sqft) | NZD 2,500,000 | NZD 2,625,000 | NZD 2,675,000 | NZD 2,750,000 |
| Studio Apartment (30 sqm / 323 sqft) | NZD 450,000 | NZD 472,500 | NZD 481,500 | NZD 495,000 |
| Loft Apartment (80 sqm / 861 sqft) | NZD 1,600,000 | NZD 1,680,000 | NZD 1,712,000 | NZD 1,760,000 |
| Townhouse (120 sqm / 1,292 sqft) | NZD 3,500,000 | NZD 3,675,000 | NZD 3,745,000 | NZD 3,850,000 |
| Investment Property (50 sqm / 538 sqft) | NZD 750,000 | NZD 787,500 | NZD 802,500 | NZD 825,000 |
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If real estate prices go up in New Zealand, which areas are likely to see the biggest increases?
Today, people who want to move to New Zealand seek stunning landscapes and vibrant city life, which Wellington delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Christchurch has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the New Zealand market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Wellington Central | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Auckland CBD | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Auckland. |
| Christchurch Central | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Queenstown | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Tauranga | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Dunedin | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Hamilton | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Napier | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Rotorua | Medium-High | Its proximity to natural attractions, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Nelson | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Tauranga | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Auckland North Shore | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in New Zealand?
In 2025, New Zealand real estate trends focus on tech-smart, energy-efficient homes, larger suburban properties for families, homes with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Homes:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Auckland and Wellington are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In cities like Auckland, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
New Zealand's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country’s green goals, leading to price appreciation in this category.
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