House prices starting to rise except in Wellington
Wednesday, 14 January 2026
Wellington was the only major centre to record a decline in house prices in the last quarter of 2025, as values across much of the country began to stabilise and show modest growth.
And it’s the large number of homes on the market - the highest number in a decade - that was shaping the outcomes.
Quotable Value’s latest House Price Index showed average residential property values across New Zealand rose 1.1% over the three months to December 2025, lifting the national average home value to $910,118.
That was 0.9% higher than a year earlier, though values remain 13.1% below the nationwide peak reached in January 2022.
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Among the main centres, Christchurch recorded the strongest quarterly growth, with values rising 2.5%, followed by Hamilton, up 2.1%. Auckland values increased by 0.8% over the quarter, while Dunedin saw a smaller rise of 0.4%.
Wellington City was the only major centre to see values weaken, slipping 0.5% over the December quarter.
QV national spokesperson Andrea Rush said the December quarter marked a shift away from the flat or declining conditions that characterised much of 2025.
“Value increases are becoming more widespread across the country, even though the pace of change remains modest in many areas,” she said.
“A clear majority of the areas we measure recorded quarterly growth, indicating that value movements are now occurring across a broader range of regions.”
She said buyers continued to have the upper hand, with more choice and the ability to negotiate which was keeping value movements in check, even as activity improves in some areas.
Across the Greater Wellington region, average values declined 0.5% over the December quarter and are now 3.6% lower year on year. The region’s average home value was now $811,490.
In Wellington City, the average home value fell by 0.5% to $915,492 and was 4.7% lower than at the same time last year. Performance varied across the city, with the largest quarterly decline recorded in Wellington City East, where values fell 4.5% to an average of $1,000,745.
In contrast, values rose 2.5% in Wellington City North to $846,768, while Wellington City West saw a small increase of 0.1%, lifting the average value to $1,030,654.
QV Wellington registered valuer David Cornford said conditions across the capital remained mixed.
“Some areas continue to weaken, while others have stabilised or seen increases,” he said. “Elevated listings are still giving buyers a wide range of choice.”
Cornford said parts of the Wellington region remained close to 30% below their previous peak values, improving affordability for first home buyers, though higher interest rates remain a barrier.
Rental conditions had also eased, he said, as high numbers of tenants leave Wellington in search of employment elsewhere following public sector job cuts during 2025. The shift has reduced rental demand and added to housing availability.
In Auckland residential property values across the wider region edged higher in the December quarter, following a period of slowing declines through the second half of 2025.
QV Auckland registered valuer Hugh Robson said the December quarter delivered a mixed picture when broken down across the different areas of the region.
“Residential property values across Auckland have begun to stabilise, with signs of improvement now emerging,” he said.
Christchurch outperformed with residential property values across Christchurch City rose 2.5% over the December quarter, lifting the average home value to $791,541. Values were now 3.3% higher than a year earlier.
Growth was across much of the city, with Christchurch City West recording the strongest increase at 5.2%. Christchurch City Peninsula was the only area to record a small quarterly decline.
QV Christchurch registered valuer Michael Tohill said activity across the metropolitan area remains solid.
“Listing numbers remain elevated, while selling times have continued to shorten, reflecting a market that is functioning well,” he said.
Demand remained particularly strong in the $1 million to $2 million price bracket, with competitive bidding and solid sale prices being achieved.
Across the wider regions, Invercargill again recorded the strongest quarterly growth at 3.3%, followed by Rotorua with 2.6%, Whangārei on 2.5%, Nelson with 2.3% and Whanganui on 2.1%. Tauranga, Napier and Palmerston North also posted modest gains.
However, some centres experienced small declines, including New Plymouth down -1.0%, Marlborough dropped -0.5% and Hastings -0.4%.
Looking ahead, Rush said early indicators point to a more stable outlook into 2026, though uncertainty is likely to persist.
“An election year can create a degree of caution, which may restrain activity as buyers and sellers take a wait-and-see approach,” she said. “Any change in values is expected to be gradual rather than rapid.”