NZ House Prices Are Flat – What Does That Mean for Investors?
By: Scott Mears - Aspire PRO Enterprises
If you’ve been watching the housing market, you’ve probably noticed – things aren’t exactly booming.
According to the latest QV House Price Index, national residential property values crept up by just 0.5% over the summer, bringing the average home value to $912,904. That’s 1.4% lower than last year and still 14.1% below the 2021 peak.
Not exactly a seller’s market, right? But if you’re an investor or looking to get into STRs (short-term rentals), this could be your window of opportunity.
Why is the market so flat?
📉 Affordability squeeze – Even with interest rates easing, buyers are still being cautious.
🏡 Too many houses, not enough buyers – A high level of stock on the market means less urgency to buy.
🚶♂️ Slower population growth – Less demand = prices staying put.
Cities like Auckland (+0.6%), Hamilton (+0.6%) and Wellington (+0.3%) barely moved, while Rotorua and Napier led the pack with 2.1% growth. Meanwhile, Hastings dropped by 3.4%, showing that some markets are still struggling.
What does this mean for STR investors?
1️⃣ Buyers have the upper hand – If you’re looking to invest, now’s the time to negotiate. More properties on the market = better deals.
2️⃣ Less competition from traditional investors – With affordability still tight, long-term landlords aren’t snapping up properties like they used to. This leaves room for STR investors to capitalize on tourism demand.
3️⃣ High-value STR markets are still strong – Despite overall flat growth, tourism-heavy areas like Rotorua and Napier are showing signs of life. STRs in the right locations can still pull in strong returns, even in a slow market.
The Bottom Line?
Flat prices = opportunity. If you’re a first-time investor or looking to grow your STR portfolio, this could be your moment to enter the market before prices start to climb again.
Thinking of making a move? Let’s chat about how to turn today’s market conditions into a win for you.