Key Facts

  • CoreLogic stated that 2023 was a significant year in NZ’s real estate market and made predictions for 2024.
  • The suburbs that experienced the greatest increase in value over the past year include Sunshine Bay, Karoro and Lake Hayes Estate.
  • The suburbs with the most significant dips in value were Featherston, Marton, and Raumanga.
  • The areas with the greatest value increase over the past five years were mainly in Gore, Ruapehu, and Gisborne regions.
  • Some Auckland CBD suburbs and Wellington Central have experienced low growth over the past five years.
  • The most expensive suburbs in 2023 were all in Auckland.
  • The most affordable areas of the country included suburbs in Greymouth, South Taranaki, and Gore.
  • Property sale volumes and house prices declined in the first half of 2023 but started to rebound after May due to changes in credit cost and mortgage availability.
  • The surge in net migration to New Zealand contributed to the rebound in 2023.
  • Rent prices increased the most in Fairview Heights, Auckland Central, and Fendalton.
  • The areas with the most significant decrease in average rent were Herne Bay, Solway, and Point Chevalier.

Article Summary

According to a report by CoreLogic, 2023 saw contrasting two halves in New Zealand’s property market, beginning with declining property sale volumes and house prices, followed by a rebound midway through the year. The rebound from the market’s low point was largely due to changes in credit cost and mortgage availability. The increase in net migration to New Zealand also played a crucial role in this recovery.

The report also revealed the suburbs which saw the highest value increase in the past year, with Sunshine Bay, Karoro and Lake Hayes Estate taking the top spots. Unfortunately, other areas such as Featherston, Marton, and Raumanga saw significant value declines. In terms of long-term growth over the past five years, Mataura, Raetihi, and Wairoa experienced the most substantial increases, while certain Auckland CBD suburbs and Wellington Central had lower growth rates.

As the property market moves into 2024, CoreLogic anticipates an “underwhelming upturn”. The positive mood influenced by a potential property-friendly government could lure investments back to the market. However, they don’t expect a deluge of investment due to low rental yields and high mortgage rates. CoreLogic believes that with rental yields continuing to be low, regular property investment purchases in 2024 will still require significant supplementation from other income sources.

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