New Zealand Property Prices Losing Steam in Some Areas

CoreLogic reports a slowdown in property price growth in New Zealand, with values dropping in certain regions over the past three months.

The real estate market in New Zealand is showing signs of recovery, with prices generally on the rise following a slump in 2022. However, according to CoreLogic, this recovery is starting to lose momentum, with values falling in some areas over the past three months. CoreLogic's analysis revealed that prices declined in 221 out of 938 suburbs nationwide by at least 1% between April and June, with 10 suburbs experiencing drops of at least 5%.

The data from CoreLogic indicates a dip in market momentum, with growth slowing down since March in both affluent and affordable areas. For example, suburbs like Takapuna in Auckland and Onemana and Tairua in Thames Coromandel saw value drops of 5-6%, while more affordable areas like Fordlands in Rotorua and Mataura in Gore District saw values fall by 7-9%.

Trade Me also confirmed the downward trend in property prices, reporting a 2.3% month-on-month decrease in the average asking price to $857,800 in May. Despite an increase in both supply and demand, prices have been declining for the past two months. Year-on-year prices, however, continue to show a small increase of 0.9%, maintaining an overall upward trend for the fourth consecutive month.

While most suburbs experienced declines in property values, CoreLogic identified 253 suburbs with gains of at least 1% during the surveyed period, with eight suburbs seeing value increases of at least 5%. The West Coast region, in particular, saw value gains, while Gisborne was the only region to experience month-on-month price growth.

In the main centres, Auckland and Wellington have seen a slowdown in the property market, with a significant number of suburbs experiencing price drops since March. Christchurch, on the other hand, has shown market strength, with only tentative signs of fading momentum.

The New Zealand real estate market is facing challenges as prices decline in various suburbs across the country. While some regions are experiencing growth, overall market momentum appears to be slowing down.