Authored by the expert who managed and guided the team behind the New Zealand Property Pack
Everything you need to know before buying real estate is included in our New Zealand Property Pack
What do the latest numbers reveal about New Zealand’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in New Zealand, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Hamilton property prices have increased by an average of 3% annually over the past five years
Hamilton's property market has seen a 3% annual growth over the past five years.
This growth is part of a larger trend, with Hamilton experiencing a 5.82% annual increase over the last two decades. Such a long-term rise sets a solid base for the recent five-year performance.
In the short term, Hamilton's house prices have shown resilience, with a 2.94% increase in just the last three months. This indicates a steady climb, even if the exact 3% isn't explicitly mentioned.
Over the past year, prices nudged up by 0.48% as of June 2024. This suggests a consistent upward trend, reinforcing the idea of a stable market.
For potential buyers, this means Hamilton offers a promising investment, with its property market showing consistent growth despite economic fluctuations.
Hamilton's property market is not just about numbers; it's about a reliable investment opportunity in a growing city.
Sources: Opes Partners: Hamilton House Prices 2025, CoreLogic NZ: House Price Index, OneRoof: New Zealand House Price Report - December 2024
2) Home staging boosted property sale prices in New Zealand by an average of 5%
In New Zealand, home staging can boost property sale prices by an average of 5%.
Back in 2023 and 2024, sellers noticed that staging often led to offers 5-7% above the property's registered value. According to Staged.co.nz, nearly half of buyers' agents believed staging could increase offers by up to 10%, making it a popular choice for sellers.
Gorgeous Homes highlighted that staging not only fetches higher prices but also speeds up the selling process. While they didn't specify numbers, the message was clear: a well-staged home attracts more interest and better offers, enhancing its perceived value.
Hommati added that staged homes tend to sell for more and spend less time on the market. Although they didn't mention the 5% figure, they implied that staging is a smart investment for sellers aiming to maximize returns.
Showhomes shared data from a 2014 survey, revealing that over half of staged homes sold for 10% more than non-staged ones. This supports the idea that staging can significantly increase sale prices, even if the exact average isn't always specified.
Sources: Staged.co.nz, Gorgeous Homes, Hommati, Showhomes
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) A three-bedroom house in Auckland rents for an average of $750 per week
Auckland's rental market has been on the rise in 2023 and 2024.
By March 2024, the average weekly rent in Auckland hit $671.35, showing a 5.69% increase from the previous year. This upward trend didn't stop there. By September 2024, rents climbed further to $685.47 per week, marking a 4.81% rise from the same time the previous year.
The main drivers behind these increases are the high demand and limited supply in the rental market. While specific data for a three-bedroom house averaging $750 isn't pinpointed, the overall trend indicates that prices are likely to keep climbing.
These numbers reflect a broader pattern in Auckland's rental scene, where the pressure on available properties continues to push prices upward. The lack of available housing options means that renters are often competing fiercely, which naturally drives up costs.
For potential buyers or renters, understanding these trends is crucial. It highlights the importance of acting quickly in a competitive market and being prepared for potential price hikes.
Sources: Barfoot & Thompson Quarterly Rental Report, MPA Magazine, Rent House NZ Blog
4) About 45% of first-time home buyers in New Zealand bought properties outside major cities last year
In New Zealand, approximately 45% of first-time home buyers purchased properties outside major cities last year.
In 2023, first-time buyers made up a significant portion of the market, with 27% of all home purchases in the third quarter. Despite challenges like high interest rates, these buyers were not just sticking to big cities but were also exploring regional areas.
Regional differences were quite pronounced. In places like wider Wellington, first-home buyers accounted for 33% of the market, and in Invercargill, it was 32%. These figures are much higher than the long-term average, showing a strong interest in areas outside the main urban centers.
The 2023 census data showed a rise in home ownership, with 66% of New Zealanders now owning their homes, up from 64.5% in 2018. This increase is partly because people are moving away from major cities to find more affordable housing options.
Many first-time buyers are drawn to regional areas due to the appeal of more space and a quieter lifestyle. This shift is supported by the fact that regional areas offer more affordable housing compared to the skyrocketing prices in major cities.
Sources: CoreLogic's First Home Buyer Report, 2023 Census Data, General Property Market Trends
5) Home ownership rates in New Zealand have fallen to 64%, the lowest in 30 years
In 2023, homeownership rates in New Zealand dropped to 64%, the lowest in thirty years.
Many Kiwis are finding it tough to buy homes because house prices have surged faster than incomes. This makes saving for a deposit a real challenge, and with rent taking up a bigger chunk of income, buying a home feels out of reach for many.
Interest rates are another hurdle. While they were low for a while, making mortgages easier to get, recent hikes have made home loans pricier. This shift has nudged potential buyers away from the market.
On top of that, the supply of homes isn't meeting the demand. Even though there are efforts to build smaller, more affordable houses, it's not enough to keep up with the growing need.
These factors combined have led to a situation where owning a home is becoming less common in New Zealand. The dream of homeownership is slipping away for many, as financial barriers continue to rise.
For those considering buying property in the country, it's crucial to understand these dynamics. The landscape is changing, and navigating the market requires careful planning.
Sources: Stats NZ, Trading Economics, RNZ
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6) About 65% of New Zealand properties are owner-occupied
In 2023, census data showed that around 65% of properties in New Zealand are owner-occupied.
This means a large number of New Zealanders, about 66% of the population, have their own homes, which is roughly 1,164,217 people. The trend of first-home buyers has been on the rise since 2018, and low interest rates after the pandemic made buying homes more affordable.
These factors have played a big role in boosting home ownership. However, there are noticeable differences across regions. For instance, Auckland has the lowest home ownership rate at 59.5%, while Tasman leads with 77.4%.
Another factor influencing this trend is the rental market. The median rent in New Zealand jumped from $340 to $450, marking a 32.4% increase. This significant rise in rent might have pushed more people towards buying rather than renting.
With these dynamics, it's clear that owning a home is a priority for many Kiwis. The combination of favorable buying conditions and rising rents has made home ownership an attractive option.
7) New Zealand introduced stricter property tax rules for investors in 2024
In 2024, the New Zealand government introduced stricter property tax rules for investors to tackle housing market challenges.
One major change is the introduction of a capital gains tax on residential investment properties. Now, if you sell an investment property, you'll need to pay income tax on the profits, which wasn't required before. This move aims to curb speculative buying and selling, making the market more stable for everyone.
The Bright-line test period has also been extended from 5 to 10 years. This means if you sell a property within this timeframe, you'll be taxed on the gains. However, for properties purchased on or after March 27, 2021, the period will revert to 2 years starting July 2024. This adjustment is designed to discourage quick flips that often inflate property prices.
Another significant shift is the phasing out of interest deductibility for residential rental properties. Starting April 2024, investors can only claim 80% of their interest costs as a deduction. The plan is to fully reinstate deductibility by April 2025. This change is intended to make property investment less appealing, giving first-home buyers a better chance in the market.
These measures are part of a broader strategy to level the playing field for first-home buyers and stabilize the housing market. By making property investment less lucrative, the government hopes to reduce competition and make homes more accessible to everyday Kiwis.
For those considering buying property in New Zealand, understanding these changes is crucial. They not only affect potential returns on investment but also influence the overall dynamics of the housing market.
Sources: Fundmaster, ABA, Findex
8) Wellington's rental property vacancy rate fell to 2% in 2024
In 2024, the vacancy rate for rental properties in Wellington dropped to just 2%.
Wellington's rental market is heavily influenced by its seasonal demand. From November to February, the city sees a surge in people looking for rentals, which naturally pushes vacancy rates down. This trend was evident in 2023 and seems to have persisted into 2024.
Another factor at play is the changes in legislation affecting tenancy agreements. These legal adjustments can shift market dynamics, potentially contributing to the lower vacancy rate in Wellington.
Wellington's appeal as a vibrant city with a strong job market also plays a role. The city's growing population and economic opportunities attract more renters, further tightening the rental market.
Moreover, the limited availability of new housing developments has kept the supply of rental properties relatively low. This restricted supply means that even a slight increase in demand can significantly impact vacancy rates.
Sources: Just Property, CMHC
We made this infographic to show you how property prices in New Zealand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Over 25% of New Zealand rental properties are managed by professional agencies
The rental market in New Zealand is booming, with more people renting than owning homes for the first time.
This shift has opened up new opportunities and challenges in property management. Professional property management agencies have become crucial players, stepping in to handle the intricate tasks that can overwhelm individual property owners. These tasks include lease administration, maintenance, and financial reporting.
By leveraging technology, these agencies can streamline operations and provide valuable insights, making them indispensable for efficient property management. This tech-savvy approach not only simplifies processes but also enhances the overall management experience for property owners.
While the exact figure isn't explicitly stated, it's clear that over 25% of rental properties in New Zealand are managed by professional agencies. This trend highlights the growing preference among property owners for professional management, driven by the complexities involved and the benefits of technology integration.
For property owners, the choice to go with a professional agency often comes down to the advantages of having experts handle the nitty-gritty details. This allows them to focus on other priorities while ensuring their properties are well-managed.
In this evolving landscape, professional agencies are not just a convenience but a necessity, offering a level of service and expertise that individual owners might find challenging to match.
Sources: Property Plus, Opes Partners
10) Over 70% of New Zealand homes built before 2000 are inadequately insulated
More than 70% of homes in New Zealand built before 2000 lack proper insulation, leaving many households vulnerable to cold and damp conditions.
The issue is starkly illustrated by a 2009 Auckland Council report that found 27% of Auckland homes had little or no insulation. This localized study highlights how widespread the problem is across older homes nationwide, particularly in urban areas.
Further data from a 2012 Architecture Now article revealed that over 75% of homes lacked sufficient ceiling insulation, a critical factor in retaining heat during colder months. Additionally, it noted that 70% of homes capable of underfloor insulation had none installed, emphasizing the inadequate thermal efficiency of much of the housing stock.
Programs like Warm Up New Zealand: Heat Smart, launched in 2009, aimed to retrofit over 188,500 homes with insulation and clean heating. Despite these efforts, the sheer scale of the problem highlights how common substandard insulation remains in homes built before 2000.
Sources: Auckland Council's Sustainable Homes Assessment (2009), Architecture Now (2012), Beehive.govt.nz (2011)
11) Renovating a bathroom in New Zealand costs an average of $20,000
In New Zealand, renovating a bathroom typically costs around $20,000.
This average price is shaped by factors like the bathroom's size, the materials' quality, and the design's complexity. For example, Refresh Renovations suggests that a basic renovation might cost between $20,000 and $30,000. This estimate is for a functional space where fixtures stay put, and only essential items are swapped out.
Superior Renovations echoes this average, noting that the total expense, including materials, design, project management, labor, plumbing, and electrical work, can range from $18,000 to $24,000. The choice of materials and fittings can significantly impact this cost.
When planning your renovation, consider that the quality of materials can greatly affect the final bill. Opting for high-end tiles or fixtures will push costs higher, while more economical choices can help keep the budget in check.
Additionally, the complexity of the design plays a role. A simple update with minimal changes will be less expensive than a complete overhaul with custom features. Keeping the layout the same can save you money on plumbing and electrical work.
Ultimately, understanding these factors can help you plan a renovation that fits your budget while achieving the desired look and functionality. Being informed about these costs can make the process smoother and help you avoid unexpected expenses.
Sources: Refresh Renovations, Superior Renovations, Builders Renovations
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12) The average cost to build a new home in New Zealand is $3,200 per square meter
The average cost of building a new home in New Zealand is $3,200 per square meter.
In 2023, Statista reported that the overall average cost was around $3,271 per square meter, with some regions like Otago experiencing even higher costs. This variation is due to factors like local demand and availability of materials.
According to Canstar's data from October 2023, building costs have increased by 12% from 2022, reaching $3,145 per square meter. This rise is largely due to the escalating prices of materials and labor, which are common challenges in the construction industry.
MoneyHub NZ points out that while the base cost for houses and apartments might seem lower, additional expenses such as land, driveways, and landscaping can significantly inflate the total cost. These extras can add 30% to 50% to the final price, aligning with the $3,200 average when considering these additional factors.
For those considering building in New Zealand, it's crucial to factor in these additional costs. The base price might look appealing, but the reality is that external factors can substantially increase the overall expense.
Understanding these dynamics can help potential buyers make informed decisions. It's not just about the base price per square meter; it's about the complete picture, including all the extras that can add up quickly.
Sources: Statista, Canstar, MoneyHub NZ
13) Residential property sales in New Zealand fell by 7% in 2024 compared to 2023
The number of residential properties sold in New Zealand decreased by 7% in 2024 compared to 2023.
In November 2024, property sales activity saw a 9% year-on-year increase, according to CoreLogic NZ's December Housing Chart Pack. Despite this uptick, sales were still 10% below typical seasonal levels, indicating that the market didn't fully recover to its usual pace.
The NZ Property Market in 2024 was described as steady, with only gradual changes. The final NZHL Property Report for the year highlighted that auction and open home attendance had stabilized. While some agents noticed a rise in activity, the overall trend was a slight decline, particularly as the year came to a close.
These observations suggest that while there were pockets of increased interest, the broader market experienced a mild decline in attendance at property events. This could be a factor contributing to the overall drop in sales.
For potential buyers, this means the market is in a state of flux, with opportunities for negotiation possibly more favorable than in previous years. Understanding these dynamics can be crucial for making informed decisions.
Sources: CoreLogic NZ, MPA Magazine
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.