🚦 The NZ Valocity House Price Index rose 1.5% since its 2024 trough with a national average house price of $969,939 as at March.
💡 Lower mortgage rates have shifted the market's volume and direction, fostering optimism in Q1 2025. Lower rates being directly correlated to OCR declines from 5.5% in August 2024 to 3.75% today.
🏔️ South Island: lower volume and lower price regions e.g. West Coast saw the strongest growth, while Queenstown & Canterbury also performed well compared to the other South Island regions.
🏡 Canterbury home values rose an average 49.08% since March 2020, underpinned by prior undervaluation compared to other NZ regions.
💲 Property price changes in Canterbury for the past 12 months: Ashburton +3.86%, Christchurch +0.27%, Selwyn -4.35%.
🪜 Valocity analysis of owning vs. renting in Canterbury has a marginal cost of just $43 per week which is likely to encourage first-home buyers.
🔣 In the past year, Canterbury’s market comprised of 28% first-home buyers, 26% investors, and 46% owner-occupiers.
🌱 Gross rental yields as of March: Ashburton 5.45%, Christchurch 4.90%, Selwyn 4.50%, Queenstown Lakes 3.80%. National median rent sits at $660 per week.
📈 Relaxing of RBNZ LVR rules and government tax changes likely to attract more investors into the market going forward.
🧑🤝🧑 Net migration remains positive however this has consisted of low-capital arrivals. Government policy adjustments are expected.
🔨 Building costs have remained relatively flat at an average $3,885 per sqm.
