Million-dollar sales help push Southland property market to new heights
Monday, 15 June 2026
Southland’s housing market is the star performer in new figures released by the Real Estate Institute of New Zealand (REINZ).
It shows the region's median sale price climbed 10.2% over the past year to a record $540,000 in May. Invercargill also reached a new high, with its median price rising to $540,000, surpassing the previous record of $535,000 set in September last year.
The milestone comes as the wider housing market remains subdued. Nationally, the median sale price increased just 1.3% to $775,000, while sales volumes fell 12.6% compared with May 2025. But REINZ warned that last figure needed “context”.
“May last year followed earlier Official Cash Rate (OCR) cuts and stronger market momentum, and while May 2026 sits below the historical May median, the month remains well clear of the lower end of the 35- year REINZ range.”
Southland's performance was the strongest of any region in the country and was supported by a growing number of high-value sales.
REINZ said homes selling for more than $1 million, once relatively uncommon in Southland, were becoming increasingly frequent and helped push the median price to a new record.
The region also recorded the strongest annual growth in the House Price Index (HPI), which measures changes in the value of residential property while accounting for differences in the types of homes being sold. Southland's HPI increased 5.8% over the year, ahead of Canterbury at 3% and Otago at 2.8%.
Canterbury was the only other region to match Southland's record-setting performance, reaching an equal record median price of $725,000, up 6.6% from a year earlier.
REINZ said the strength seen across parts of the South Island reflected a combination of factors, including relative affordability, strong rural commodity prices and ongoing migration from larger centres.
While buyers across much of the country remain cautious due to cost-of-living pressures, higher fuel prices and uncertainty ahead of November's general election, Southland appears to be benefiting from a strong local economy and comparatively affordable housing.
The latest data suggests those factors are helping offset broader market headwinds.
Nationally, the market showed signs of stabilising but remained uneven. The Reserve Bank's decision to hold the OCR at 2.25% in May confirmed the end of the rate-cutting cycle that had supported housing activity throughout 2025.
The national House Price Index remained slightly negative, down 0.6% over the year, while inventory levels rose 5% to more than 36,000 properties.
Sales activity was weaker in most parts of the country, with 15 of the 16 regions recording fewer sales than a year ago. Hawke’s Bay was the only region not to record a decline, with sales counts unchanged from May 2025.
New Zealand's housing market showed signs of stabilising in May, but its direction remains uncertain.
Key factors include the Reserve Bank's July OCR decision, the impact of Budget 2026, the upcoming election and global events such as the Iran conflict, which could affect inflation and consumer confidence.
Regional differences are expected to persist, with areas such as Canterbury and Southland continuing to outperform. While listings remain stable and buyer confidence cautious, property values appear broadly steady.