NZ near bottom of global house price growth ranks
Friday, 30 January 2026
A flatlining housing market has seen New Zealand fall even further in the global price growth stakes, an international property consultancy says.
The latest Knight Frank global house price index had New Zealand at number 50 of 55 countries with a nominal price decrease of 0.1% over the last year.
It put the country’s nominal price growth over the third quarter of 2025 at -0.5%, reinforcing local data which shows little movement in national price measures towards the end of last year.
New Zealand dropped from 49 in the previous index’s rankings, despite recording a bigger annual price decrease of 0.9% in the earlier quarter.
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That was because house price growth across the countries in the index strengthened over the third quarter, with the weighted average annual price increase at 2.4%, up from 2.2% in the second quarter.
The consultancy’s head of global research, Liam Bailey, said it signalled a steady, albeit modest, improvement in pricing conditions.
Nominal growth had edged higher again as central banks pivoted towards rate cuts and extended the easing phase, he said.
“This broadening shift in policy is helping to lower borrowing costs and support demand across an increasing share of markets.”
Turkey had the biggest nominal annual growth at 32.2%, although Bailey said high inflation left its real growth at ‑0.8%.
Eight markets, all in Europe, recorded nominal gains above 10%, with North Macedonia (25.1%) and Portugal (17.7%) taking out the second and third rankings.
Australia was ranked at 16, up from 24th in the previous quarter’s index, with nominal annual growth of 7.2%, while the United Kingdom was at 38 with 2.2% and Canada was below New Zealand at 52 with -2.6%.
Finland, mainland China, and Peru were the lowest ranked markets in the latest index. Finland was at 55 with an annual price fall of 9.5%, and its prices down 6.1% in the three months.
Bailey said that despite firmer nominal outcomes across the index real gains were still hard‑won, with global real price growth remaining slightly negative at 0.1%
In several markets, inflation continued to erode purchasing power, leaving affordability stretched even as policy rates trended lower, he said.
“To see firmer growth into 2026, policymakers will need to maintain an easing while inflation continues to retreat.”
Throughout 2021, at the peak of the Covid-era boom, New Zealand had the second and then third-fastest rate of price growth in the Knight Frank index.
But it tumbled down the rankings as its prices fell 17% to 18% from the market peak, and then turned in subdued price growth after hitting the trough of the cycle.
The latest Real Estate Institute data showed housing market momentum dropped off in December heading into the holiday season, with sales down for the second month in a row.
Lizzy Ryley, the institute’s chief executive, said the market was resilient and confidence was gradually returning, particularly in regions where buyers and sellers were active.
“Looking to 2026, the market is expected to see momentum gradually improve as conditions continue to stabilise.”
But this week ANZ, the country’s biggest bank, cut its forecast of how much house prices are likely to grow this year by half to 2%, and said it expected limited market movement.