PHOTO: 🏠 Wellington’s housing market has officially hit rockier ground, with property values now sitting close to 30% below their peak, according to the latest QV data. FILE
The QV House Price Index revealed a nationwide slump, with Wellington leading the charge downward. In the three months to the end of August, Wellington values dropped another 2.4%, bringing the total fall since the January 2022 peak to a staggering 29.9% in some areas.
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📉 How Bad Is It?
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Wellington City – West: Down 29.9%, falling from $1,442,657 to $1,010,714.
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Lower Hutt: Down nearly $300,000, from $1,032,527 to $741,841.
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Auckland: Now 20% below peak, with Waitākere dropping the hardest at 21.7%.
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National average value: $906,977 – still 13.4% below 2022 peak.
By contrast, Queenstown continues to defy the trend, climbing 2.5% in the latest quarter and sitting nearly 17% higher than five years ago.
💬 What Experts Are Saying
QV spokesperson Andrea Rush says while plummeting values are painful for homeowners, buyers may finally get a break.
“With home values coming down and interest rates beginning to ease, affordability is slowly improving for buyers in many areas. However, higher living costs, rising unemployment, and stretched household budgets continue to restrict demand.”
Rush noted that net migration has slowed sharply, with more Kiwis now leaving New Zealand than arriving – a complete reversal of the post-pandemic boom that previously fuelled house prices.
🏗️ Bright Spot: Queenstown Still Booming
Unlike most of the country, the Queenstown Lakes District is holding strong, with steady construction and surging demand. Surrounding areas like Mackenzie District (Twizel, Fairlie) are also seeing growth, as buyers priced out of Queenstown search for alternatives.
Rush warned, however, that 2026 could bring further headwinds – including rising unemployment, weaker household budgets, and falling migration – even as interest rates trend downwards.
🔮 What’s Next for the Housing Market?
The market remains fragile heading into spring, with economists divided on whether prices have further to fall, or if affordability gains will finally spark fresh demand.
One thing’s for sure – the days of record-breaking highs are long gone, and the new normal looks set to be subdued, cautious, and buyer-friendly.