Alongside an overview of the year that’s been, the annual CoreLogic NZ Best of the Best 2024 report highlights the country’s top property sales, highest and lowest growth suburbs and best-performing regional markets.
CoreLogic NZ Chief Property Economist Kelvin Davidson said this year’s report painted a nuanced picture of a market in flux after early optimism gave way to renewed price declines and slower activity.
“After an initial lift in values early in the year, driven by sentiment following the late-2023 election, property prices quickly resumed their decline as unemployment rose and interest rate cuts were delayed,” he said.
The CoreLogic hedonic Home Value Index (HVI) shows national property values have declined 5% since February, with Auckland and Wellington particularly hard-hit, while Christchurch and Dunedin proved more resilient.
“This year has been a buyers’ market, with plenty of stock on offer, giving purchasers more negotiating power. First-home buyers have made up a record 27-28% of purchases, supported by improved affordability, access to KiwiSaver withdrawals, and low-deposit lending allowances,” he said.
“Meanwhile, mortgaged investors have struggled with high interest rates and low yields, which have kept many on the sidelines.”
Auckland dominates the luxury market
Herne Bay retained its position as the country’s most expensive suburb, with a median value of $3.36 million as Auckland accounted for nine of the top 10 high-value suburbs. Saint Marys Bay ($2.76 million) and Remuera ($2.45 million) were second and third respectively. Arrowtown was the only suburb outside Auckland to make the top 10, ranking fifth with a median value of $2.39 million.
The country’s highest transaction of the year was the $21.8 million sale of 84 Paritai Drive, Orakei. The remaining nine in the top 10 sales were all in Auckland too.
Regional growth centres stand out
Blaketown (Grey) recorded the strongest annual median value growth rate at 16.7%, while Kaikoura (12.8%) and Cobden (Grey) (12.8%) also demonstrated robust performance. Over a five-year period, Cobden’s median value increased 108.8%.
Rental yields highest in the regions
Mataura (Southland) delivered the highest gross rental yield at 10.8%, based on advertised rents and the values of those properties rented out. Next was Wellington Central which has a gross rental yield of 9.2%. In contrast, Whitford (Auckland) recorded the lowest rental yield of 1.2%, reflecting subdued rental returns in higher-value areas.
Diverging market activity
Wallacetown (Southland) had the fastest-moving market, with properties selling in seven days, likely reflecting strong demand and limited supply. At the other extreme, Waimate recorded a median of 83 days on market, highlighting slower activity in some rural areas.
Challenges in declining suburbs
Auckland Central experienced the most significant five-year median value decline (-9.1%), while Mataura (Gore) led the annual decline rate at -10%. These figures underscore the challenges faced by some areas in maintaining property value amidst broader market fluctuations.
Cautious optimism ahead
With inflation now under control and mortgage rates falling, Mr Davidson is cautiously optimistic about 2025 suggesting the country is set for a period of modest recovery.
He estimates conditions could lead to a 10% rise in sales volumes and potential uptick in property values of around 5% over the year, however Mr Davidson warned values will remain well below the post-COVID peak, partly due to the dampening pressure caused by a build-up of listings.
"Affordability has improved compared to recent years, but the lingering effects of high listings and economic uncertainty might mean an uneven recovery for the property market. While 2025 brings some positive sentiment, it’s unlikely to deliver sharp gains, with a steadier path ahead for buyers and sellers alike," he said.
“Investors may find opportunities as lower interest rates improve cashflow conditions, though access to finance could remain a key hurdle for some.
“Overall, 2025 could be a year of conflicting forces for the property market, with some factors more supportive, and others still challenging,” Mr Davidson concluded.
Best of the Best 2024 key highlights:
- Most expensive suburb: Herne Bay (Auckland) retained its position at the top, with a median value of $3.36 million.
- Most affordable suburb: Murupara’s (Whakatane) median dwelling of $191,600 makes it the most affordable suburb in the country.
- Top sale: 84 Paritai Drive, Orakei (Auckland) sold for $21.8 million in March 2024.
- Regional performers: Blaketown (Grey) had the top annual median value growth at 16.7%, while Cobden (Grey) recorded the strongest five-year gain of 108.8%.
- Highest rent change: Median rents in Nukuhau (Taupo) increased 27.7% over the year as Kawerau tenants experienced a -9.1% fall in median rents.
- Highest rental yield: Mataura (Southland) delivered a gross rental yield of 10.8% followed by Wellington Central at 9.2%.
- Days on market: Wallacetown (Southland) properties sold in seven days, while Waimate recorded the slowest median sales rate, averaging 83 days.
- Weakest markets: Mataura (Gore) experienced an annual drop in median value of -10%, while Auckland Central recorded decline in value of -9.1% over the past five years.
Download Best of the Best 2024
CoreLogic New Zealand