PHOTO: Wellington, NZ. FILE
Cotality’s end-of-year data exposes a bizarrely divided market — with some suburbs soaring and others sinking fast.
📉 A YEAR OF STAGNATION — BUT BIG MOVES UNDERNEATH THE SURFACE
New property data from Cotality paints a complex picture of New Zealand’s 2025 housing market: flat on the surface, but wildly uneven depending on where you look.
Lower mortgage rates gave buyers some breathing room, yet a sluggish economy and weak labour market kept house values pinned down across much of the country.
Chief property economist Kelvin Davidson says that despite the “extended flat patch,” there has still been plenty happening behind the scenes.
“First-home buyers have remained very strong at nearly 30% of all purchases. And 2025 also saw the return of mortgaged multiple-property owners.”
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🔥 MOST EXPENSIVE SUBURBS 2025 — AUCKLAND STILL RULES
Cotality confirms what everyone suspected: Auckland still owns the luxury end of the market.
NZ’s Top 5 Most Expensive Suburbs
Herne Bay — $2.6m median
Westmere — $2.2m
Ponsonby — $2.2m
Remuera — $2.0m
Arrowtown & Tamahere (Waikato) — the only non-Auckland entrants in the Top 10
Despite the muted market, prestige suburbs remain resilient, supported by high-wealth households and limited supply.
🏚️ NZ’S AFFORDABILITY SHOCK: CENTRAL WELLINGTON IS NOW THE CHEAPEST
In one of the biggest surprises of the year, Central Wellington now has the lowest median value in New Zealand — just $318,706.
Davidson says it comes down to one thing: apartments.
“Apartments simply carry lower values than standalone houses. But Wellington’s downturn has also played a role — it was priced much higher four or five years ago. It’s been a soft market.”
Other low-value centres include:
Taumarunui — $353,942
Westport — $365,347
Auckland Central — $365,657
📈 THE BIGGEST 5-YEAR VALUE SURGES
While major centres stalled, smaller towns and affordable suburbs skyrocketed.
Top 5 Value Rises (5-Year Growth)
Greymouth — nearly +60%
Somerfield (Christchurch) — almost +50%
Hokitika — nearly +50%
Jacks Point (Queenstown) — strong luxury-driven gains
Lake Hayes (Queenstown) — affluent-buyer magnet
Davidson says cheaper markets naturally absorbed demand more easily:
“Most places with strong growth started out affordable — small towns, rural regions, or low-priced pockets in the main centres.”
📉 THE BIGGEST FALLS — NEWMARKET TAKES THE TITLE
Cotality’s data reveals an unexpected downturn in formerly high-demand areas.
Top Price Drops Over Five Years
Newmarket — down 15.8%
Te Aro — down 15%
Petone — down 13.2%
And in 2025 alone:
Oneroa (Auckland) — down 7.9%
Omaha — down 5.7%
Atawhai (Nelson) is the only non-Auckland suburb among the biggest annual declines.
Auckland remains a study in extremes — home to the priciest suburbs and some of the weakest performers.
“Auckland’s affordability challenges, economic sluggishness and heavy supply pipeline have all held back growth,” Davidson says.
📉 RENTAL MARKET SHOCK: RENTS FALL IN MAJOR CITIES
With net migration dropping through 2025, rents have softened nationwide, including rare declines in:
Auckland
Wellington
Christchurch
A tough year for landlords — but a welcome change for renters.
Biggest Rent Rises
Gladstone, Invercargill — +18%
Waipawa — +17.3%
Timaru — +16.9%
Biggest Rent Drops
Long Bay (Auckland) — –17.1%
Hilltop (Taupō) — –13.8%
Ngaio (Wellington) — –13%
🔮 WHAT HAPPENS NEXT?
Davidson believes the ingredients are forming for modest growth in 2026:
Lower mortgage rates
Improved affordability
Rising buyer interest
But don’t expect a Covid-era boom.
“There seem to be fundamentals coming together for more growth — but not another explosive cycle.”