Softer townhouse and apartment prices open doors for first-home buyers
Asking prices rose for a second straight month in September, and most New Zealand buyers and sellers say the approaching general election isn’t changing their plans, according to the Trade Me Property Pulse Report.
The national average asking price climbed 0.8% to $835,050, following five consecutive monthly falls between March and July. Prices are now 0.4% higher than a year earlier but remain about 5% below their February peak.
Sale prices tell a weaker story. The national median sale price eased 2.3% year on year to $755,000 in September, according to the latest Real Estate Institute of New Zealand (REINZ) data.
Entry points for first-home buyers
Asking prices for apartments, townhouses, and units were 4% lower nationally than a year ago, with falls of almost 8% in Auckland and 6% in Wellington.
Trade Me Property customer director Gavin Lloyd (pictured) attributed the decline to a wave of townhouse construction in the main centres. He described the segment as “one of the most accessible entry points right now” for first-home buyers looking to get on the property ladder.
Within that segment, units bucked the trend, rising 1.8% nationally and 4.7% in Christchurch City. Across other property types, Christchurch City was also the only main centre to record annual growth, up 2.5% to $725,600.
Borrowing costs are rising, however. Westpac’s latest Weekly Economic Commentary notes that fixed mortgage rates for two to five years now sit above 5%, and markets are pricing an 83% chance of an official cash rate (OCR) hike on 28 October.
Otago leads as North Island prices slip
Otago posted the strongest annual growth, up 8% to $938,800. That included a 7.5% rise on August alone, and it narrowed the region’s gap with Auckland to about $53,000.
North Island regions fared worse, with prices down in Taranaki (4.3%), Auckland (3.3%), Northland (2.3%), and Wellington (1.4%).
Auckland’s average asking price was $992,000, under $1 million for a fourth consecutive month. New listings in the region rose almost 6% on a year earlier, while searches fell nearly 5%.
Lloyd said: “More stock and less competition keep buyers in a strong position when negotiating.”
Election not a deal breaker
A Trade Me survey of more than 2,000 active buyers and homeowners, conducted in August 2026, found that only 20% of sellers and 22% of buyers considered the election a primary factor in their decisions.
Lloyd said supply and demand look evenly matched, with searches 6% lower than last spring and new listings edging down. Buyers can take their time, he said, and “sellers aren’t competing against a flood of new stock”.
A quarter of the sellers surveyed intended to list in October regardless of the election.
Lloyd said Trade Me would be watching for any lift in listings in the coming weeks.
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