Central Otago has been the most buoyant of Otago’s districts this summer according to Quotable Value’s (QV) latest house price index. 

Central’s average home value grew by 2.1 per cent in the three months to the end of February.

Tall Poppy Central Otago business owner Peter Hishon shared his perspective about what’s happening in the residential market as Easter nears.

“Central Otago, we’re the wee star really…. There was a flat patch through winter and spring but since mid December we’ve seen activity really cranking.” 

The Central App has heard from recent buyers of multiple offers being presented on properties over the busy summer season. 

Peter said buyers were acting with urgency and that more multi-offers were in play now than at this time last year.

“Interest rate [reductions] are the biggest factor at the moment… it’s reflected in what banks are saying; they’re run off their feet as first home buyers are getting organised.”

His businesses sales were up by 30 to 40 per cent since October, Peter said.  

Buyers in Central were a combination of work from home professionals and traditional retirees; both groups attracted to the lifestyle on offer in the district. 

One buyer, who wanted to remain anonymous said they had to move quickly, “and put our best foot forward, [the offer] was about five to 10 per cent above the government valuation.”

Neighbouring Dunedin and Waitaki experienced miniscule growth of 0.3 per cent in house values on average since the start of December last year. 

For Queenstown residential property values are down again slightly; 0.3 per cent lower on average than at the same time last year.

The QV house price index shows residential property values have increased nationally by an average of just 0.5 per cent in the three months to the end of February 2025.

QV house price index February 2025. PHOTO: Supplied 

QV operations manager James Wilson said it had been the housing market’s flattest summer in six years – since home values increased by just 0.4 per cent throughout the pre-Covid summer months of December, January, and February in 2019.

The average home is now worth $912,904, which is 1.4 per cent less than the same time last year and 14.1 per cent below the market’s peak in late 2021.

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