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
Are you considering investing in New Zealand's real estate market? Curious about which areas are set to boom in 2025? Want to know where your investment will yield the highest returns?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the New Zealand Property Pack
1) Wanaka's stunning landscapes and rising popularity are driving up property prices in this hot market
Wanaka is a hot market thanks to its stunning landscapes and growing popularity as a lifestyle destination.
By the end of 2023, the average house value in Wanaka hit $2,029,400, showing a steady rise of 4.55% from the previous year. This increase highlights the growing demand for homes in this picturesque area.
The rental market is also thriving, with the median weekly rent reaching $820 in the first half of 2024. This strong rental market is fueled by a surge in demand for holiday homes and rental properties, especially in the luxury segment.
Population growth is another factor boosting the property market. The Queenstown Lakes district, which includes Wanaka, is expected to grow at an annual rate of 1.4%, driven by domestic migration and tourism.
Wanaka's charm as a lifestyle destination is often highlighted in media and social media, showcasing its beautiful landscapes and enhancing its appeal. The local council's urban development plans further indicate ongoing growth and development.
Sources: Wanaka App, Otago Daily Times, Opes Partners, Wanaka App
2) Invercargill attracts investors with low property prices and high rental yields
Invercargill is becoming a hot spot for property investors due to its affordable property prices.
Back in 2023 and 2024, the median house price in the Southland region, where Invercargill is located, was just $425,000. This is a steal compared to places like Auckland, where paying the mortgage could eat up 93.6% of a median income, while in Invercargill, it was only 31.5%.
Investors are also drawn to Invercargill for its high rental yields. In 2023, the median rental yield was 5.15%, with some areas offering even higher returns of 6-7% for those willing to invest in fixer-uppers.
Invercargill's population of around 50,000 people is stable, with nearly half living in rental accommodation. This creates a consistent demand for rental properties, making it a reliable choice for investors seeking steady income.
Local media coverage highlights Invercargill's real estate market trends, showcasing its potential as a long-term investment opportunity. This buzz is further attracting investors to the area.
Sources: Propertyscouts, Real Estate Investar
Everything you need to know is included in our Real Estate Pack for New Zealand
3) Hastings in Hawke's Bay is growing due to its strong agricultural economy and high demand for rentals
Hastings in Hawke's Bay is buzzing with growth, thanks to its booming agricultural economy.
In recent years, particularly around 2023 and 2024, the region has seen a noticeable uptick in agricultural productivity. For example, there was a 4% increase in meat and wool production, which in turn led to a 5% boost in livestock sales. This thriving agricultural sector is not just about numbers; it's about creating more jobs and bringing economic stability to the area.
But it's not just agriculture that's driving Hastings forward. The demand for rental properties is on the rise, making the property market in Hawke's Bay, including Hastings, quite attractive. Property prices have been climbing by over 9% annually, yet rents remain more affordable than in big cities like Auckland. This affordability is pulling in young professionals and remote workers, further fueling the demand for rentals.
The agricultural boom also means a need for a larger workforce, especially seasonal workers. These workers need places to stay, which has contributed to the increased rental activity in the region. It's a cycle where a strong agricultural economy feeds into a growing rental market, creating a vibrant community.
Hastings is becoming a hotspot for investment, with its unique blend of economic opportunities and lifestyle benefits. The combination of a robust agricultural sector and a rising demand for rental properties paints a picture of a region on the rise.
Sources: Journal of New Zealand Grasslands, Hawke's Bay Property Market (2025), Hawke’s Bay Farming for Resilience Report (March 2024)
4) Te Awamutu in Waikato is a hot spot for its affordable prices and closeness to Hamilton
Te Awamutu in Waikato is gaining popularity thanks to its affordable housing and closeness to Hamilton.
In recent years, the median sale price in Te Awamutu has climbed by 3.6%, now sitting at $715,000. This uptick shows that more people are eyeing this area, with 292 properties sold in the last year. It's a clear sign that Te Awamutu is becoming a hot spot for homebuyers.
Compared to Hamilton, Te Awamutu offers a more budget-friendly housing market. While Hamilton's house prices hover just below the expected median, Te Awamutu stands out as a more affordable choice. This is especially appealing for those who find themselves spending over 25% of their income on rent, making Te Awamutu a smart option for saving on housing costs.
Transportation improvements, like the Te Huia train service, have made commuting a breeze. This service connects Hamilton, Huntly, and Auckland, making it easier for those working in Hamilton to enjoy the rural charm of Te Awamutu. Real estate listings often highlight this convenience, underscoring the area's accessibility.
Te Awamutu's appeal isn't just about affordability; it's also about lifestyle. The town offers a peaceful, rural setting while still being close to the hustle and bustle of Hamilton. This balance makes it an attractive choice for those looking to escape city life without sacrificing convenience.
With its growing popularity, Te Awamutu is becoming a sought-after destination for homebuyers who want the best of both worlds: affordable living and easy access to urban amenities.
Sources: Waikato Property Market (2025), Te Awamutu Market Insights, Getting Around Te Awamutu
5) Papamoa in Tauranga faces high demand due to its coastal lifestyle and strong rental yields
Papamoa in Tauranga is a prime spot for living and investing due to its coastal lifestyle and strong rental yields.
Investors are particularly drawn to Papamoa because of its competitive rental yields. In 2023, the median rental yield for houses was 3.94%, which stands out compared to other areas in New Zealand. This makes Papamoa a smart choice for those looking to get a good return on their property investments.
The area is not just about numbers; it's about growth. Papamoa's population has surged by 74% from 2013 to 2023. This boom suggests that more people are choosing Papamoa for its coastal charm and lifestyle perks. The completion of major infrastructure projects, like the Tauranga Eastern Link, has made Papamoa more accessible, adding to its allure.
Living in Papamoa means enjoying a laid-back beach vibe while still being close to urban conveniences. The community is vibrant, with local markets, cafes, and outdoor activities that cater to both families and young professionals. This blend of lifestyle and convenience is a big draw for new residents.
For those considering a move or investment, Papamoa offers a unique mix of natural beauty and economic opportunity. The area's development is well-planned, ensuring that it retains its charm while accommodating growth. This balance is key to its ongoing popularity.
Whether you're looking to buy a home or invest in rental properties, Papamoa's strong market performance and lifestyle benefits make it a top contender. The community's growth and infrastructure improvements are set to continue, promising a bright future for this coastal gem.
Sources: Infometrics, Real Estate Investar, Opes Partners
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6) Whangarei Heads attracts attention for scenic views and rising property values as infrastructure improves
Whangarei Heads is catching eyes for its stunning views and rising property values.
Over the past year, the area has seen a 7.2% increase in median property prices, now at $965,000. This jump shows a growing interest in the region, making it a hot spot for potential buyers. The charm of Whangarei Heads isn't just in its views; it's also in the lifestyle it offers, attracting retirees and remote workers who are keen on a serene yet connected living environment.
Infrastructure improvements are a big part of this appeal. With projects like the Brynderwyn's roading project, the area is becoming more accessible, offering safer and more convenient travel. Enhanced public transport, including a comprehensive bus service, is easing congestion and supporting the growing population, making daily commutes smoother for residents.
Real estate agents are buzzing about Whangarei Heads, noting its potential for significant property appreciation. The combination of natural beauty and improved infrastructure is drawing interest from both local and international buyers. Media outlets have even dubbed it an emerging property hotspot, further fueling its popularity.
For those considering a move, Whangarei Heads offers a unique blend of tranquility and connectivity. The area's development is not just about new roads and transport; it's about creating a community that balances nature with modern living. This makes it an attractive option for those looking to invest in a property that promises both lifestyle and value growth.
As infrastructure continues to improve, the potential for property appreciation in Whangarei Heads is likely to grow. This makes it a compelling choice for anyone looking to invest in a region that offers both beauty and opportunity.
Sources: Real Estate Insights, Northland Regional Council, United Civil Projects
7) Paraparaumu on the Kapiti Coast draws buyers with beachside living and better transport links to Wellington
Paraparaumu on the Kapiti Coast is drawing in homebuyers with its charming beachside living and better transport links to Wellington.
The new Transmission Gully motorway has made a big difference, cutting down travel time between Wellington and the Kapiti Coast, which makes commuting a breeze.
Real estate agents are seeing a spike in interest for homes in Paraparaumu, with more people checking out listings and attending viewings.
This buzz around the area is pushing up property values, as folks are attracted to the stunning beaches and lifestyle perks that Paraparaumu offers.
The Kapiti Coast District is also growing, with a population increase expected by 30,000 over the next 30 years, thanks to its improving living conditions.
Paraparaumu's coastal lifestyle is a big draw, making it a hot spot for those looking to enjoy a relaxed yet connected life.
Sources: Kapiti Coast District Population and Dwelling Projections, Kapiti Coast Council News, City Population
8) Wigram Christchurch is booming with new homes and strong community amenities driving up property values
Wigram in Christchurch is buzzing with new residential projects and community amenities, making it a hot spot for property buyers.
In recent years, property prices in Wigram have been on the rise, driven by high demand and limited supply. This upward trend is expected to continue, with experts predicting a 3% to 7% increase in property values by 2025 compared to 2024. The area is becoming increasingly popular, and it's easy to see why.
One standout development is Wigram Skies, a large-scale residential project by Ngāi Tahu Property Ltd. This project is not just about homes; it includes the realignment and naturalization of Paparua Stream, creating pedestrian-friendly routes and open spaces. These thoughtful designs have turned the area into a vibrant community hub.
Families are flocking to Wigram, thanks to the expansion of community amenities like parks, open spaces, and new schools. The local government is also investing in infrastructure, with projects like the Wigram Business Park boosting the area's appeal. This focus on development is making Wigram a desirable place to live.
Real estate trends in Wigram are leaning towards tech-smart, energy-efficient homes and larger suburban properties. These features are attracting buyers and driving up demand and prices. The area's growth is supported by a strong community spirit and a commitment to sustainable living.
With all these developments, Wigram is not just a place to live; it's a thriving community with a bright future. The combination of new projects and community amenities is making it a prime location for property investment.
Sources: Interest.co.nz, Eliot Sinclair, Christchurch Price Forecasts
Everything you need to know is included in our Property Pack for New Zealand
9) Lincoln in Canterbury is booming with new housing developments and a growing university population driving rental demand
Lincoln in Canterbury is buzzing with new housing developments and a growing university population that's boosting rental demand.
The Selwyn District Council is revamping the Lincoln Town Centre, focusing on Gerald Street and adding new amenities, which shows a commitment to infrastructure that supports housing growth. This investment is a clear sign of the town's upward trajectory.
Lincoln University is expanding, and while we don't have exact enrollment numbers, their future development plans hint at a rising student population. This naturally leads to more people looking for places to rent.
Rental prices are climbing, with the average monthly private rent in Lincoln jumping by 10.3% from last year, hitting £864 in November 2024. This surge reflects the increasing demand for rental properties, driven by students and new residents flocking to the area.
Locals are noticing the changes, with more cafes and shops popping up to cater to the growing community. The town's vibe is shifting, making it an attractive spot for both investors and those looking to settle down.
Lincoln's transformation is not just about numbers; it's about a community evolving with new opportunities and a vibrant atmosphere. The combination of university growth and housing development is creating a dynamic environment that's hard to ignore.
10) Rolleston's rapid growth and affordable housing near Christchurch attract first-time buyers
Rolleston is booming thanks to its affordable housing and closeness to Christchurch.
For those looking to buy their first home, Rolleston is a dream come true. It offers a variety of housing options that cater to different budgets, making it a top choice for first-time buyers. Compared to Christchurch, the prices here are much more wallet-friendly.
One of the biggest perks of living in Rolleston is its proximity to Christchurch. The commute is a breeze, taking just about 28 minutes by car. This makes it perfect for people who work in the city but prefer to live in a more affordable area.
Rolleston isn't just about cheap housing; it's also about convenience and lifestyle. Thanks to significant infrastructure investments, like the $125 million from the NZ Upgrade Programme, the town is becoming more livable. New flyovers and improved walking and cycling routes are just some of the enhancements making life here better.
These infrastructure upgrades are not just about getting around; they add to the overall appeal of Rolleston. With these improvements, the town is not only growing but also becoming a more attractive place to settle down.
So, if you're considering a move, Rolleston offers a unique blend of affordability and convenience, making it a compelling choice for many. Its rapid growth is a testament to its increasing popularity.
Sources: Good Returns, Najib Real Estate, Construction News, Travelmath
11) Hobsonville Point Auckland is popular for modern developments and excellent transport links attracting young professionals
Hobsonville Point in Auckland is a hotspot for young professionals due to its modern vibe and great transport links.
Between 2018 and 2023, the area saw a notable rise in population, especially among young families and first-time homebuyers. This boom is fueled by a wave of new townhouses and terraced homes, all backed by modern infrastructure and easy access to shopping and work.
Hobsonville Point is celebrated for its well-planned communities, offering a mix of townhouses and standalone homes. The streets are designed with aesthetics in mind, making it a pleasant place to live. The Outer Link bus service, running every 15 minutes, connects residents to the city center, making public transport a breeze.
Its proximity to the city center and a handy ferry service make commuting efficient and stress-free. The demand for new properties and resale homes is high, with media often spotlighting the area's modern infrastructure and convenient access to amenities as major draws for young professionals.
Local government initiatives, like the upcoming Te Kori sports park in Scott Point, are set to boost the area's appeal even further. These developments are part of what makes Hobsonville Point a sought-after location.
With its blend of modern living and easy commuting, Hobsonville Point is a prime choice for those looking to settle in a vibrant community.
Sources: Greater Auckland, Greater Auckland, Hobsonville Point, Bayleys
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12) Richmond in Nelson is a booming market with a sunny climate and rising property values
Richmond in Nelson is a hot property market thanks to its sunny climate.
With a Marine west coast, warm summer climate, Richmond enjoys more sunshine hours than many other parts of New Zealand. This makes it a magnet for those who love sunny weather. Locals often boast about the endless sunny days, which are perfect for outdoor activities and enjoying the natural beauty of the area.
Property values in Richmond are on the rise, unlike some regions like Wellington and Auckland. Richmond is potentially outperforming these areas, and this trend is expected to continue. Experts predict a national property value increase of about 5% in 2025, with Richmond likely riding this wave.
The demand for housing in Richmond is growing, driven by its natural beauty and climate. Local real estate agencies note that first-time buyers make up 25.5% of property purchases in November. This shows that the lifestyle and climate of Richmond are significant draws for new residents.
Richmond's appeal isn't just about the weather. The community vibe and outdoor lifestyle are big selling points. People are drawn to the area for its friendly atmosphere and the chance to live in a place where nature is at your doorstep.
As more people discover Richmond's charm, the property market is expected to stay strong. Richmond's sunny climate and rising property values make it an attractive option for potential buyers looking for a vibrant community with a great lifestyle.
Sources: NZ Adviser, Weather and Climate, K Real Estate
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.