Home values in Aotearoa New Zealand rose 0.3% in April, marking the fourth consecutive monthly increase as market confidence builds.
The Cotality Hedonic Home Value Index (HVI) hit $819,096, its highest level since June 2024 but still 16% below its January 2022 peak.
- Regional Markets Show Broad-Based Growth
Major centres saw steady gains, with Kirikiriroa Hamilton leading at +0.8%, followed by Ōtautahi Christchurch (+0.5%) and Tāmaki Makaurau Auckland (+0.3%). Smaller increases were recorded in Ōtepoti Dunedin, Te Whanganui-a-Tara Wellington, and Tauranga (+0.1%), showing broad but measured improvement. - Different Property Types Join the Recovery
The upturn is now spreading across housing segments, with standalone houses rising 1% and townhouses up 0.9% since January. Lifestyle properties saw a modest 0.2% gain, suggesting varied recovery speeds across property types.
Economist warns against over-optimism
Cotality NZ (formerly CoreLogic NZ) Chief Property Economist Kelvin Davidson acknowledged the ongoing recovery but urged caution.
“Clearly, lower mortgage rates have been a strong support for property values in recent months, giving more buyers the confidence and ability to enter the market. Perhaps in a slightly perverse way, the recent global uncertainty about tariffs and trade protectionism could also see interest rates fall further.”
“That said, a fresh boom in property values seems unlikely. For a start, the stock of listings on the market remains high, giving buyers plenty of power when it comes to price negotiations.”
“Meanwhile, as interest rates for internal serviceability tests at the banks fall to less than 7%, the caps on debt-to-income ratios (DTIs) for mortgage lending are reportedly becoming a bigger consideration for more borrowers.”
“It’s also worth keeping in mind we had a ‘mini upturn’ in values over the second half of 2023 and first few months of 2024 which then partially reversed out again. This latest emerging phase of growth seems to have stronger fundamentals than the previous one, but even so, a subdued economic backdrop still looms as a restraint.”