Five towns where you can snag a property bargain - no matter what the Official Cash Rate is

Thursday, 21 August 2025

Prices outside the main centres, in some of New Zealand's tiniest towns, are a nostalgia trip.

Good news, if you’re worried the recent “once-in-a-decade mortgage-rate” resetting OCR cut means house prices are about to skyrocket. One economist reckons the market will remain buyer-friendly for a wee while yet.

'We've had lower mortgage rates for a year now,' says Cotality chief economist Kelvin Davidson. “Even if there's a bit more to come, the biggest falls are still behind us and that hasn't stoked house prices to any great degree yet.”

Uncertainty and a lack of confidence in the economy will keep prices flat. That will likely only change when confidence comes back to the labour market. “That's maybe when we might see a bigger housing market effect.“

While it is a buyer’s market, it’s still not cheap to get on the ladder, especially in the main centres. According to the QV House Price Index, the average house price in Aotearoa is $913,567. In Auckland, the average house price may have dipped below $1m in August, but it was still an eye-watering $989,250.

Outside the main centres, however, it’s a very different story. House prices in some small towns are a nostalgia trip - they’ll take you right back to the prices five or even 10 years ago.

It’s not always easy to move to a small town - especially if you’re used to life in the big city - but with some small town prices in the low to mid $300,000s, it might be worth giving it a try.

Westport is located at the mouth of the Buller River, where it meets the Tasman Sea.

Here are five tiny towns where the dream of home ownership is within reach:

Westport, Buller, West Coast

The home at 162 Queen St in Westport, is on the market for $225,000.

With a population of just 5000, they say if you’re not the most outdoorsy type, Westport can be a little isolating. The trade off, of course, is living at the junction of two national parks and a forest, with the wild Tasman Sea on your front doorstep.

Taranaki Maunga from Patea’s Main Street.

The other trade off is house prices. The average value for Westport is $342,350, a little over a third of the national average, and if you’re diligent, you may find homes for under $300,000.

The two-bed, 1950s-built weatherboard home on 162 Queen St, which sits on a 1071m² section, has an asking price of $225,000, that’s $10,000 under the RV. The listing is with Martin Jack for Ray White.

This former state house is a blank slate.

Nearby, a 60s-built, two-bed unit at 75A Romilly St has a smaller section (490m²), but a similar price - $235,000.

Pātea, South Taranaki

This very funky mid-century home is a fraction of the price a similar home in one of the main centres would be.

Pātea is possibly best known as the birthplace of New Zealand’s unofficial national anthem - and yes, the Aotea canoe remembrance arch made famous by the music video is still there - it is also the third largest town in South Taranaki.

The Whanganui river winds through Taumaranui’s autumnal colours.

This might be surprising when you learn it has a population of less than 1500 people.

With its rich history, both Māori and European, and its attractive location nestled between the Pātea River and the rugged northern coastline of the Cook Strait, the average house value here is $292,100.

A home like this in Auckland or Wellington could cost in excess of $1m. In Taumaranui, it could be yours for offers over $319,000.

The three-bed former state house at 179 Egmont St, with a 863m² corner section, is pretty much a blank canvas both inside and out. It’s tidy, and was fully renovated about four years ago.

Reefton is an up-and-coming town making steps to move on from mining booms of the past, to embrace adventure tourism, a gin distillery among other things. (Video first published February 2020)

With a CV of $220,000, the vendors are seeking offers over $309,000. The listing is with Gemma Heath of Collective.

Looking for something with a little more pizazz? Check out the mid-century home at 8 Edinburgh St, which sits on a 951m², and is seeking offers over $319,000.

Fully renovated, with a modern kitchen and bathroom, private courtyard, carport and lawn with a rural outlook, a similar home in Wellington or Auckland would be in the $700,000+ range.

The Ponderosa Cottage is leaning into it’s Gold Rush roots.

Taumarunui (Central North Island)

Mataura is one of the smallest towns on this list, if you keep your eye on the listings, you could find a real bargain here.

Sandwiched between two national parks and a national forest, and tucked into a bend of the Whanganui River, Taumaranui is considered the gateway to adventure tourism in Aotearoa.

With a population of 3963, homes here tend to be a little older, a more lived-in, but that’s reflected in the low prices. The average house value of $335,300.

This character home in Mataura is a fraction of the national average.

The classic, three-bed weatherboard home at 24 Makere St gives a sense of what you can find in this little town. With its 110m² footprint on a 862m² section, it’s practically the 1/4 acre dream, and the price ticket is $307,000.

Over at 30 Turaki St, a charming, two-bed, 1910-built, double-fronted villa awaits your decoration skills. It needs some TLC, but the vendors are seeking offers over $319,000, so you should be able to afford the reno. The listing is with Tim Burton & Natalie Willetts for Tall Poppy.

Reefton, Buller, West Coast

There are parts of Reefton that feel like stepping on to the set of a Western. From the Lantern Court Motel to the Victorian façades of Broadway, the town centre has that old timey, Gold Rush feel to it.

That old-timey vibe continues with the house prices - the average value here is $373,350.

Take the 20s-built bungalow at 74 Church St for example. With three beds and a 1012m² section, the vendor is seeking enquiries over $395,000 for this tidy home, packed with the kinds of period features you pay a premium for in the main centres.

If you want to really get into Reefton’s Western/Gold Rush vibe, check out the Ponderosa Cottage at 10 Ramsay St in the historic mining settlement at Black’s Point. So cute it’s like Laura Ingalls Wilder wrote it, this three-bed settler’s cottage sits on a 860m² section, and is on the market for $320,000. The listing is with Mark Kinley for Property Brokers.

Mataura, Gore, Southland

Possibly one of the most isolated small towns on this list - Mataura is 12 minutes from Gore, 40 from Invercargill, and has a population of round 1600.

Prices here have been trending slowly upwards, however, after a sharp drop in April, 2025. The Median in May was $278,000.

The first house we looked at here was on the market for even less than that. The vendor of 133 Main St, is seeking $199,000 for this four-bed home. It is in need of some TLC, but it sits on a huge 1012m² section, and at that price, you’ll be able to afford the reno.

If you’re able to come $94,000, you could nab the charming character home at 36 Oakla nd St, which is on the market for asking price $295,000. With three beds and a very tidy V section, this home could also do with a bit of cosmetic attention, but is packed with period features that are hard to come by these days. The listing is with Leigh Jackson fro Arizto.

**As ever, readers are advised to do their own due diligence when considering buying a home and always get *financial advice from a licensed financial advisor.*** *For first time buyers, see* Stuff’s First Time Buyer’s Club, a six-week email course, our guide to the help available for first time buyers, our 101 guide to buying a first home, and government website settled.govt.nz.