Most New Zealand suburbs see house values drift lower
Fri, 11th Sep 2026 (Today)
Most New Zealand suburbs recorded falling house and townhouse values over the three months to September, according to Cotality's latest suburb-level analysis. It found declines in 79% of standalone house markets and 74% of townhouse markets.
The figures suggest the housing market remains flat to weak, with values drifting lower as sales activity stays subdued. For standalone houses, about 300 of 1,422 suburbs were stable or posted gains, while more than 750 recorded falls of more than 1%.
Townhouses showed a similar pattern. Almost three in four suburbs recorded quarterly declines, including 22 where values fell 5.0% or more since June. Only 26% of townhouse markets were flat or higher.
The national median value is now $797,944, down 1.0% from a year earlier. Cotality attributed the trend to cautious buyer demand and a high level of listings, giving purchasers more leverage in price negotiations.
“Sales activity has made a slow start to the year, showing modest declines each month compared to the same period in 2025,” said Kelvin Davidson, chief property economist at Cotality. “This careful demand is in line with the broader downward drift in property values, with the national median now sitting at $797,944, down 1.0% compared to last year.
“This has kept the stock of available listings high, giving buyers the upper hand in price negotiations. However, with employment remaining resilient, few vendors are under pressure to sell.”
Regional split
The strongest performances for standalone houses were mostly in more affordable regional markets, particularly in areas with median values below $700,000 and often below $600,000. These included Pukenui in Northland, where values rose 5.1% over the quarter, Waimamaku in Northland at 2.9%, Makarewa in Southland at 2.7%, Kennington in Southland at 2.5%, Blackball on the West Coast at 2.3%, and St Arnaud in Tasman at 2.1%.
A similar affordability pattern appeared in the townhouse market. Quarterly gains of more than 2.0% were recorded in Paeroa in Hauraki at 4.9%, Castlecliff in Whanganui at 4.5%, and Koutu in Rotorua at 4.4%.
Davidson said some provincial areas were holding up better than the main urban centres. “Across these provincial pockets, as well as broader regions like Canterbury, Otago, and Southland, local economies are showing a degree of resilience,” he said.
“Key regional drivers like farming and tourism continue to support buyer confidence in these budget-friendly markets.”
Main centres
By contrast, Auckland and Wellington suburbs generally posted weaker results over the past 12 months. Higher housing supply and a sluggish labour market were restraining growth in those centres, Cotality said.
Townhouse values in particular fell sharply in several suburbs. The largest annual declines highlighted in the analysis included Beachlands at 11.2%, Māngere at 9.9%, Wiri at 9.8%, and Kelburn at 10.7%.
The analysis also cited Kingsland in Auckland among suburbs where townhouse values fell over the past year, with a decline of 9.1%. Even so, Cotality said the broader data did not show townhouse values consistently trailing standalone houses by a wide margin.
“In general, our data is not showing that townhouse values are dramatically underperforming their standalone counterparts. But some particular terraced properties in these specific suburbs may be lagging due to characteristics such as unpopular floor or storey layouts, or a lack of parking,” Davidson said. “Anecdotally, sales incentives are becoming more popular too, or unsold stock is sometimes being put out to rent.”
High-end market
Despite the broader weakness, Auckland remained at the top end of the market. Herne Bay was the country's most expensive suburb for houses, with a median value of $3.03 million, while Stonefields had the highest townhouse median at $1.30 million.
The latest data suggests New Zealand's housing market remains split between softer conditions in the main cities and steadier demand in cheaper regional areas. Affordability appears to be a defining factor in where values are still finding support, even as buyers stay cautious and sellers face a more competitive market.
“With elevated economic uncertainty, higher mortgage rates, and a labour market recovery delayed until 2027, activity could stay subdued for at least another six months. However, improved affordability should help limit further downside risk,” Davidson said.