Property values in Southland and the Queenstown Lakes district have more than doubled in the past decade and an economist says while this could be good for some, it may not be good for economic progress.
Data from realestate.co.nz showed from the beginning of 2015 to the end of 2024, average asking prices in Southland increased 112.2%, Central Otago-Queenstown Lakes rose 106.6% and Otago was up 98.6%.
Nationally, the average asking price stopped short of doubling, rising 60.3% over 10 years, from $556,931 in 2015 to $892,579 in 2024.
Realestate.co.nz spokeswoman Vanessa Williams said the biggest price jumps happened outside New Zealand’s main centres.
"These figures show the growing appeal of regional New Zealand."
Infometrics chief executive and principal economist Brad Olsen said there were some "pretty crazy moves" in the housing market during this period and what the data showed was many factors drove the housing market.
Some of it was around the supply of housing, some of it was around the demand, he said.
"Part of the reason we’ve seen those house price increases across the country, but also down in Otago and Southland, is you’ve seen a lot of demand, and certainly over the last decade, decade and a-half, not quite as much of an increase in supply up until sort of more recently.
"The question, I guess, for a lot of people is, OK, that’s history — what’s going to happen next? And certainly our expectation is that you might not have quite as much further house price growth over the next couple of years as we might have previously."
When asked if have such growth was good for the country’s economy, he said the house price increases which happened in some areas were "obscene and not good for economic progress".
While someone who owned a house felt a bit richer and able to sell their property for more money than they invested, for someone who wanted to get into the market, it could be more difficult.
"Although the likes of house prices might have doubled in some areas over the last nine years or so, incomes haven’t doubled and headline inflation hasn’t doubled."
