The average Queenstown home is now worth 46.3% more than at the outset of the Covid-19 pandemic in New Zealand four years ago.
The latest QV house price index showed the average home value in the resort town increased by 2.7% in the three months to the end of March to $1.8 million.
That was the most growth of the main urban areas monitored by QV but was down from a three-month rolling average of 4.2% in the previous index. Houses were worth 9.9% more than at the same time last year.
Nationally, the average home value had increased by 2.2% to $924,734 in the quarter, a small increase on the 1.3% quarterly home value increase reported at the end of February.
The average home value was now 1.9% higher than the same time last year and 13.1% below the market’s peak in late 2021.
Residential property values increased by an average of 2.3% this quarter in Otago, a slower rate of growth than the 3.4% reported in the previous index and every territorial authority recorded less positive growth in this month’s index compared to last.
Waitaki, at 3.6%, experienced the largest amount of home value growth in the region this quarter while Central Otago (1%) experienced the least.
The average home value in Dunedin increased by 1.3% to $635,474 which was 0.3% higher than the same time last year.
It was the first time the city’s average home value had been up on an annualised basis since June 2022.
In a statement, local QV valuer Rebecca Johnston said the city’s number of properties listed for sale had continued to rise into March and the days to sell was also on the increase compared to late last year.
"This highlights a loosening of supply versus demand, with it being firmly a buyers market. However, real estate agents are reporting open home attendance dropping away and a reduction in multi-offer situations. This is to be expected due to the tapering off of the selling season."
Invercargill was one of the few main urban centres to record more home value growth in this index compared to the last.
The city’s average home value increased by 0.7% throughout the three months to the end of March, a reversal of the 0.5% reduction recorded throughout the three months to the end of February.
The city’s average home value was $480,637, 6.3% higher than the same time last year.
QV valuer Andrew Ronald said there was healthy demand from first-home buyers and investors were beginning to return to the market.
