The summer marketing period for house sales in Central has hit, with a local real estate firm expecting a modest increase in values next year.

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

“We’re optimistic for 2025, Central will do well off the back of places like Queenstown and Dunedin doing well. New Zealandwide and here in Central, there are green shoots in the market.”

Peter said more and more people were moving from Cromwell to Alexandra and other places in Central for affordability reasons. 

“Central Otago is still very affordable. First time buyers might get a three bedroom house for $650K, and have bit of travel through the [Cromwell] gorge.”

Peter said there was a bit of a rush to get properties to market before Christmas, but it was not unusual to see for sale signs sprouting up a lot at this time of year.

“We’re getting back to normal, maybe how things were six or seven years ago.”

Tall Poppy Central Otago business owner Peter Hishon. PHOTO: Supplied

Along with the seasonal influx of properties being listed, retirement villages units being completed has freed up houses locally. 

The Central App has heard of houses being sold within a week of being listed. 

“The market is moving… new listings, if realistic in price expectations are moving quickly, some overpriced stuff is sitting there for a long time.”

Mortgage brokers have noted approximately one in five clients are investors, Peter said.

“The price of rentals has gone up 30 - 35 per cent in the last three years. It’s crazy what some rents are.”

Peter said the “trickle of investors in the market” would mean a few more rentals becoming available, but with inflation driving prices up in the last few years continuing it would still be tough for those needing to rent.

“The market is not going to go stupid, net migration [will decrease], there are head winds in the economy, interest rates are gradually coming back and banks are going to be cautious in lending… 2025 [will] see a good steady market.”

One Agency real estate agent Cushla Aitcheson, who is based in the Teviot Valley, said things were remaining “slow and steady” with buyer demand gradually picking up.

“I’ve got buyers from all over New Zealand, from Auckland and down. Roxburgh and the Teviot Valley is a township that is becoming more known, and it’s affordable.”

Cushla said the sale of sections had slowed because building costs were more expensive.

“It’s the reverse to what it used to be, houses are selling quickly and sections are taking time.”   

Harcourts Cromwell agent Judy Ludemann, who has 30 years experience in Cromwell real estate, said the stable and solid market for homes in Cromwell was continuing.

“People are looking and waiting for properties . . . watching for the kind of property they want. They’re acting when they see the right property.”

In Cromwell there was demand for sections and Judy was also seeing investors trickling back in.

“Renting has always been tight, I hope the investors trickle back it will help with the rental situation.”

Cromwell had quietly grown, and always felt like a nice town, she said.

“It still feels like a village here and then you might take a drive around and you can feel and see the growth.” 

Home values across Otago were up by an average 0.5 per cent this quarter according to

Quotable Value’s (QV) latest house price index released on Tuesday. 

Queenstown was the only local council area to see a small reduction in the latest figures, down by 0.4 per cent.

QV house price index November 2024. PHOTO: Supplied 

Dunedin experienced its first quarterly uplift in average home value since June. 

The city’s average home value has grown 0.7 per cent to $643,391 in the three months to the end of November 2024.

With one month of 2024 still to be accounted for, the average home value in Dunedin is now 2.6 per cent more than it was at the outset of this calendar year.  

Queenstown's average home value is now 2.9 per cent higher than on the first day of this year. 

Nationally, home values grew by an average of 0.3 percent in the November quarter – the first quarterly increase since April. 

The average home is now worth $908,173, which is 0.7 per cent less than at the same time last year and 14.6 per cent below the market’s peak just over three years ago.

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