Wellington sheds 44 million-dollar suburbs in five years as South Island markets surge ahead
Five years after New Zealand's average property value first crossed $1 million, new figures from OneRoof and Valocity show the national average now sits at $954,000, down 4.9% over that period and down from $965,000 just three months ago. Nationwide values have fallen 13% from their late-2021 peak, and the past three months saw declines in every region except Otago, Southland and the West Coast.
That softening comes as borrowing costs look set to rise further — bank economists are near-unanimous that the Reserve Bank will lift the OCR to 2.75% at its 2 September Monetary Policy Statement, even as inflation expectations show early signs of easing.
The number of suburbs with average values of $1 million or more has eased only slightly, from 353 five years ago to 317 today, while $2 million-plus suburbs dipped from 32 to 30. At the very top of the market, however, wealth has become more concentrated: suburbs averaging above $3 million rose from three to seven over the same period.
Wellington's losses contrast with Auckland's scale and the South Island's rise
Wellington has fared worst of any major market, with its average property value now 22% below where it stood five years ago — the weakest result of any region — and not a single suburb in the capital recording positive growth over that period. Its tally of $1 million-plus suburbs has collapsed from 61 to just 17.
Auckland remains the country's largest million-dollar market by far, with 151 of its 200 most-active suburbs still averaging $1 million or more, but the region has lost 21 suburbs from that club over five years, and only 12 Auckland suburbs are worth more today than they were five years ago.
The South Island tells a very different story. Every one of Canterbury's 132 suburbs is worth more than it was five years ago, with the region's $1 million-plus suburb count climbing to 36 from 22 new entrants. Otago's Queenstown-Lakes district has also strengthened, with more than half its suburbs worth more today than five years ago, and 34 recording gains above 20%. Southland — which had no $1 million suburbs five years ago — now has its first, Seaward Bush in Invercargill.
Equity gap widens between Wellington and the South Island
For mortgage advisers, the divergence has direct implications for client conversations around equity and refinancing. OneRoof reported that homeowners who bought in Wellington during the 2021 boom are among those most likely to be sitting in negative equity today, while clients in Canterbury, Otago, and Southland are more likely to have built substantial equity gains over the same period.
Affordable markets also persist at the other end of the scale — Bay of Plenty's Murupara remains the country's cheapest suburb at an average value of $213,000, despite gaining more than 25% over five years.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
