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Resilient real estate withstands 2023 downturn to clock a decade of growth

February 20, 2024

Despite the dip in property prices during 2023, the most recent data from realestate.co.nz demonstrates once again that property prices rise over the long term. 

In the ten years to 2023, the average asking price in every New Zealand region has increased, with 12 of 19 regions at least doubling and the remaining six increasing by at least 50%. Of the 76 districts in the report, 36 increased by at least two-fold*, while a further six were up by more than 90%. 

Nationally, the average asking price was up by 77.5%, increasing from $504,388 in 2014 to $895,289 in 2023.  

Sarah Wood, CEO of realestate.co.nz, says the data underscores a resilient real estate market: “We saw the market go through a correction in 2023 after rapid growth during the previous few years. Despite prices dropping back last year, they are still up substantially in most places when we compare them to the years before COVID-19 ignited the market.

Keith Niederer, General Manager, NZ, Raine & Horne, said, “It’s heartening for most New Zealanders, whose primary investment lies in their homes, to witness the enduring trajectory of upward price trends, despite occasional fluctuations. 

“It underscores the resilience and value of residential real estate as a long-term asset.” 

The most significant price increases occurred between 2021 and 2022, with a considerable number of locations experiencing a doubling in value compared to the preceding decade.  

In 2021, 34 out of 76 districts saw their prices double, a trend that intensified in 2022, with more than half of the districts (43 out of 76) doubling in the same timeframe. 

Sarah Wood attributes this unprecedented growth to low-interest rates, population growth, and constrained housing supply, culminating in a fiercely competitive market environment.\

Whether you want to sell or buy a property, don’t hesitate to contact your nearest Raine & Horne office.