Home values in Central have increased by 3.6 per cent on average, eclipsing increases in Dunedin, Queenstown and Invercargill according to Quotable Value (QV) house price index for the December quarter. 

Tall Poppy Real Estate business owner Peter Hishon said Central’s growth was off the back of Wānaka, Queenstown and Cromwell.

“It’s a bit of a halo effect of being under their apron.

“It can be confusing as we aren’t Lakes. If you go from Central Otago’s council area, average home values are around $700,000  to $800,000. It's not the $1.6 million that other mainstream media have reported.”

Peter said entry level housing in Cromwell, Alexandra, Roxburgh and Omakau was very affordable at approximately $500,000 to $650,000.

“In Central there are very affordable homes not too far from the action.”

Peter Hishon, of Tall Poppy Real Estate. PHOTO: Supplied

For the lifestyle property market Peter said the situation was similar to residential.

“Buyers are slower to move in some cases. Once we get over the holidays it’s going to race ahead in February and March.

“What is heartening is that it's been happening for a few months, primarily from interest rates tipping [lower].”

Peter said he expected steady growth to continue in Central’s housing market and that strong net migration numbers were also being felt “driving up the rent market.”

Queenstown house values increased by 3.0 per cent, Dunedin by 2.8 per cent and Invercargill by 2 per cent. 

Waitaki was another strong performer with home values rising by 3.9 per cent. 

For the Otago region QV registered valuer Rebecca Johnston said real estate agents were reporting increased open-home attendance and multi-offer situations, along with an increased number of investors moving back into the market for existing homes after 2023 was mostly dominated by first-home buyers.

Slow and steady growth appears to be on the cards for New Zealand’s housing market in 2024, as evidenced by a general stalling in home value growth this quarter.

QV house price index for December 2023, showing main urban areas’ average value and change for this quarter. PHOTO: Supplied

At a national level the index shows home values have increased across all of the main urban centres monitored, but at a reduced rate overall. 

The average home value increased nationally by just 0.6 per cent throughout the December quarter to $905,070, down from the 2.3 per cent quarterly home value increase reported at the end of November.

Read more: Central Otago home values inching up.