10 Most Expensive Regions In NZ

Date Jun 15, 2021
Blog category Broadband
By Staff Writer

With the current state of housing in New Zealand, deciding where to buy a house, let alone starting the hunt, is a challenge. Real estate in NZ is more expensive than it has ever been — there’s a lot to consider aside from the price of the house itself.

Costs associated with buying a house

  1. Home insurance - it’s compulsory for homeowners to apply for home insurance as required by mortgage lenders. This is to give lenders security for missed or failed repayments. 
  2. Utility connection costs - moving to another city requires connection fees if you want to keep your current provider. 
  3. Rates - annual payments are required from residents for water, environmental planning and protection, public health and waste services, community services, sporting and recreation services. 
  4. Repair and upkeep - set aside 10% of your mortgage to cover for emergencies like plumbing problems, roof damage, and overall maintenance of your home.  
  5. Moving expenses - hiring a moving company is expensive so it’s best to segregate your belongings or dispose of some things from your previous home.  
  6. Mortgage - this is a loan used to purchase real estate or land. The average length is 25 years, though it might be shorter or longer. Until the loan is paid off, it’s secured against the value of your house.


10 Most Expensive Cities in NZ

*The records below are based on the April 2021 monthly data by REINZ.

Region Median House Price 
Auckland $1,125,000
Wellington $870,000
Hawke’s Bay $770,000
Tasman  $767,500
Nelson $743,000
Waikato $730,000
Otago  $710,000
Gisborne $690,000
Marlborough $672,000
Northland $670,000

Auckland House Prices

The median house price in Auckland last April reached a new high of $1,125,000 or a 21.6% increase. Sales fell from 3,970 in March to 2,591 in April 2021, down from the high levels shown in March. 

The lower number of transactions in April appears to be the result of investors slowing down, especially that buyers rushed to beat the new Government limitations. First-time home buyers are nevertheless active in the market, hoping to take advantage of the few participants at auctions and open houses. 

However, properties are still selling fast. In April, auctions accounted for 48.1% of all properties sold, the highest percentage for April since records began. There's a significant increase in the number of developers who are looking for property for new construction.

Here are the varied house prices around Auckland, NZ. 

Auckland City  $1,320,000
Franklin District $838,000
Manukau City $1,070,000
North Shore City $1,280,000
Papakura District $860,500
Rodney District $1,141,000
Waitakere City $995,00

Otago Region House Prices 

Queenstown-Lakes District 

Queenstown is a global tourist centre attracting tourists from across the globe each year. In its economy, tourism plays a vital role, with several employment opportunities linked to tourism, food and lodging.

Is it expensive to live in Queenstown?

Queenstown is more expensive than most other regions of NZ given that it’s a tourist resort town. Many of the shops have tourist prices, so you may have to spend more than you're used to on certain occasions.

The rent in the town centre is especially expensive and finding reasonable lodging might be difficult, too. The average weekly rent for a room in the city is $300. However, prices can vary depending on the season. Generally, competition is at its peak during the winter peak tourist season.

The rent in the outer suburbs is often substantially lower — ranges from about $170 to $250 a week.

Residential property is likewise more expensive in Queenstown with a median house price of $1,200,000, which can be at par with properties offered in Auckland. 

Central Otago District $630, 000
Clutha District $360,000
Dunedin City $621,120
Waitaki District $399,000

5 Cheapest Places to Buy Property in NZ 

Region Median House Price 
West Coast  $275,000
Southland $402,000
Taranaki  $540,000
Canterbury $566,000
Manawatu/Wanganui $580,000

West Coast House Prices 

Real Estate in the region is in high demand, with inquiries coming in from all regions across the country. April 2021 has the most sold properties in a month since 2006. 

Likewise, investor activity in the West Coast region has remained strong and has not slowed as a result of the government announcement, as it has in other parts of the country.

Buller District $270,000
Grey District $255,500
Westland District $435,000


Southland House Prices 

The number of houses sold in the Southland region fell by 40.2% from March 2021, as first-time buyers and investors took a cautious approach following the government’s announcement in late March, preferring to wait and see how this would affect them. FOMO (fear of missing out), which used to drive a lot of sales, looks to be less of a motivator for buyers. 

Since May 2020, the number of properties sold in Southland has been at an all-time low. The Southland REINZ House Price Index grew 19.6% to a record 4,156, indicating that the underlying value of houses in the region is still rising. 

Gore District $315,000
Invercargill City  $428,500
Southland District  $385,000

Why is there an increase in house prices in New Zealand? 

Experts believe that the main reason for the increase is the current scarcity of high-quality homes on the market. It's a problem that's been amplified by low-interest rates. Because many investors are currently earning a higher rate of return on their investment properties, they will be more hesitant to sell, especially as house prices continue to rise.

How to buy a house in NZ? 

Finding the right home at the right price is possible with proper planning and budgeting. Here are some times to help you in your home buying process.

  • Compare Prices - The economy has failed us recession after recession, yet there are still ways to get the property you want while staying within your budget. If you have a reliable broadband connection at home, you can quickly browse listings online and compare costs based on your budget. A home that is more expensive than other homes in the region may provide an opportunity for a good deal.
  • Know your monthly expenses - You should have an estimate of how much your bills will be before moving into a new home. Make a list of your bills, utilities, groceries, insurance, and extra spending, such as school fees, to avoid running out of money. When you're ready, talk to your bank about how to apply for a home loan with your current budget.
  • Save for your first deposit - It's a good idea to be prepared when making your first deposit. Lenders need at least a 20% down payment on properties valued at $150,000, so you must put down $15,000 upfront. So, save up for your initial deposit and concentrate on how you will pay your monthly mortgage by saving and budgeting. This will increase your chances of approval and may drive you to seek additional sources of income.

Read more about it here: Income vs. Housing: How Can Kiwis Find The Right Home? 

While it's important to compare property prices, it's also necessary to have a reliable internet connection to find the best deals in the market. Compare broadband plans at CompareBear today!