NZ property values soften | PRUDENTIAL FINANCE
New Zealand’s housing market remained subdued in August, with national property values falling 0.4 per cent and extending the current run of monthly declines to five.
Cotality NZ’s Home Value Index put the national median property value at $797,944, down 1.0 per cent from $805,799 a year earlier. The latest figures point to continued softness rather than a renewed sharp correction, with buyers remaining cautious and vendors generally not under significant pressure.
Main centres mostly move lower
Christchurch was the only main centre to record monthly growth in August, rising 0.1 per cent. Hamilton slipped 0.1 per cent, Dunedin fell 0.2 per cent, Tauranga declined 0.4 per cent, Auckland dropped 0.5 per cent and Wellington fell 0.6 per cent.
Cotality NZ chief property economist Kelvin Davidson said economic uncertainty, higher mortgage rates and the volume of properties available for sale were reducing the urgency for buyers. At the same time, softer labour-market conditions had not developed into widespread job losses, allowing many sellers to remain patient on price.
That combination has contributed to slower sales activity through 2026 and a gradual easing in values. Davidson noted that most of the major price correction occurred in 2022 and 2023, with the market remaining subdued since then.
Auckland and Wellington remain buyer-friendly
Auckland’s weakness was broad-based in August. Franklin was unchanged, while Papakura fell 0.1 per cent, Waitakere 0.2 per cent, Manukau 0.4 per cent, Auckland City 0.5 per cent, and Rodney and North Shore both 0.6 per cent.
Over the quarter, declines across Auckland’s sub-markets were generally around 1.0 to 2.0 per cent or more. Manukau, Waitakere and Auckland City were down at least 2.5 per cent over the year, while every Auckland sub-market remained at least 20 per cent below its previous peak.
Wellington also recorded falls across all of its wider sub-markets. Upper Hutt declined 0.4 per cent, Wellington City 0.5 per cent and Porirua 1.0 per cent in August. From previous peaks, falls ranged from 22.9 per cent on the Kāpiti Coast to 28.4 per cent in Lower Hutt.
Despite the weakness, first-home buyers accounted for 35 to 40 per cent of recent activity across the wider Wellington area.
Regional markets mixed as outlook stays restrained
Outside the main centres, Queenstown was unchanged in August. Invercargill and Napier each fell 0.2 per cent, Whanganui declined 0.8 per cent, New Plymouth 0.9 per cent and Gisborne 1.1 per cent. Over 12 months, Invercargill and Queenstown were among the stronger regional markets cited, recording increases while the other listed urban areas declined.
Nationally, property values remain about 18 per cent below their peak, although they are still around 15 per cent above March 2020 levels. Cotality said several affordability measures have returned to around long-term averages or slightly better levels.
However, Davidson cautioned that improved affordability does not mean values are positioned for a rapid rebound. With mortgage rates elevated and the economy subdued, he said consistent house-price growth appeared unlikely until labour-market conditions and job security improve more clearly, potentially well into 2027.
The November election adds another source of uncertainty. Cotality noted that sales activity has historically tended to slow in the months before elections, although evidence of a consistent effect on prices is less clear.
SOURCE ATTRIBUTION:
Based on reporting by Cotality NZ, published 4 September 2026.
