Capital gains: Wellington average asking price almost $95,000 more than a year ago

May 2025 - Are Wellington's 'winds of change' an early sign of market momentum?

Key Takeaways 

• Pockets of change around the country, with stock down year-on-year in Northland, Waikato, Taranaki, Southland, and Manawatu/Whanganui.
• Southland sets an all-time asking price high since records began 18 years ago. 

Figures

• National average asking price edges up year-on-year to $864,348.
• Stock continues to rise, up by 5.6% to 34,415.
• New listings up by 2.9% to 9,489.

The days of dramatic highs and lows appear behind us, with steady activity defining New Zealand’s property market for more than two years. However, new data from realestate.co.nz suggests winds of change might be blowing through Wellington.  

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New Zealand’s May Property Report shows eight of our 19 regions have seen increases in their average asking price both month-on-month and year-on-year. The capital city now asks almost $95,000 more on average compared to May 2024, a 12.9% increase year on year.

Sarah Wood, CEO of realestate.co.nz, said Wellington is worth watching closely. “After months of subdued figures, this lift could be early evidence of buyer confidence returning to the capital.  A jump like this gives vendors reason to feel optimistic.”

New listings were down in Wellington by 32.1% compared to May 2024, possibly driving the average asking price increase. 

“We still need something significant to really move the dial in the property market. Last week’s OCR drop wasn’t that, but if interest rates drop and we see more investors in the market, we’re likely to see a greater appetite for buying,” said Wood.

Average asking prices: Strength in the south 

The national average asking price remained steady during May, up a marginal 0.8% year-on-year and up 1.4% month-on-month. However, one standout was Southland, which recorded an all-time high since records began 18 years ago — up 6.5% year-on-year to $564,291.

Other pockets of the motu also saw notable average asking price increases.

The biggest year-on-year lifts were in Taranaki (up 13.1% to $756,271), Wellington (up 12.9% to $828,531), and Otago (up 7.4% to $645,788).

Average asking prices also increased year-on-year in Northland (up 3.6% to $850,725), Hawke’s Bay (up 3.2% to $787,761), Nelson & Bays (up 2.0% to $856,958) and Central North Island (up 1.2% to $782,120). 

Nine regions reported a year-on-year decline, notably West Coast (down 9.8% to $494,855), Gisborne (down 6.3% to $634,604) and Central Otago/Lakes District (down 6.0% to $1,382,741). 

“We’ve had over two years of price stability and there’s no sign of real change just yet,” said Wood. “Where does this put us in the property cycle? It’s hard to tell as immigration isn’t supporting a growing market at present, so we continue to remain in a holding pattern, waiting for either demand to rise or economic indicators to shift before we see meaningful movement.”

Stock levels: still up, properties starting to move in some regions

Total stock sat at 34,415 properties in May, up 5.6% compared to the same time last year. While this indicates continued supply confidence, five regions saw year-on-year declines: Northland (1.3%), Waikato (3.6%), Taranaki (2.9%), Southland (2.7%), and Manawatu/Whanganui (6.1%).
All of our 19 regions reported month-on-month decreases to stock levels, with the biggest in Gisborne (down 16.3%), followed closely by Southland (15.3%) and Otago (down 12.0%). 

Wood says that while it is too early to call a trend, this may be an early indicator that stock is starting to move.

“These regional dips could suggest that some of the higher stock levels we’ve seen over the past year are finally starting to clear,” explained Wood. “It will be interesting to see whether this trend continues, especially as recent changes to the OCR begin to influence the market.”

“It’s important to note, however, that across the board we still aren’t seeing a ‘buyers’ rush’. During May, the number of properties that remained on our site for less than 30 days actually decreased compared to April,” said Wood. “Buyers still have the time and choice to do their due diligence, make informed decisions, and purchase the property that’s right for them.”

New listings show a seasonal pattern with mixed results regionally

New listings were up nationally by 2.9% year-on-year, following seasonally expected trends.

Year-on-year, 13 of our 19 regions saw an increase in new listings. Topping the chart was the West Coast with an increase of 30.4% year-on-year, followed closely by Central Otago/Lakes at 29.3% and Central North Island at 26.5%.  

Some of the country’s sunniest regions also saw year-on-year increases in new listings: Gisborne (up 23.3%), Nelson & Bays (up 15.1%), and Bay of Plenty (up 9.2%). In our main centres, Auckland’s new listings were up 9.5% year-on-year, while Canterbury saw an 8.9% increase. Wellington, meanwhile, sat at the opposite end of the list, down 32.1% in new listings compared to May 2024. 

“The next few months will certainly be interesting off the back of last week’s OCR drop, the traditional quieter winter period, and the deadline for Healthy Homes,” said Wood. “But it’s certainly exciting to see movement in the capital, especially because, as we know, big markets turn first.”

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For media enquiries, please contact:

Hannah Franklin | hannah@realestate.co.nz

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