Aucklandresidential values fell 19.2% from the market peak, national values fell 15.2% but Wellington’s decline is steepest, down 23%, Quotable Value records released to the Herald show.
New quarterly housing market data was released today showing market performance in the threemonths to December 31.
“The housing market looks set to remain relatively static throughout the opening months of 2025, following yet another flat quarter.”
The latest QV House Price Index showed values edged up only 0.1% nationally in the December quarter.
That was not enough to finish the year in the black.
“The average home is now worth $902,414, which is 0.3% less than at the start of 2024 and 15.2% below the market’s peak just over three years ago,” QV announced.
Most real estate data tends to be either monthly or quarterly: very little gives the bigger picture. So, the Herald asked how much values had declined throughout New Zealand in the past few years since the market peaked.
Of particular interest is Auckland and what has happened to its values from its peak until now, partly because it’s the biggest market.
We can’t say “peak to trough” because we don’t know what will happen in the next quarter or this year in total.
We certainly can’t be sure that December was the trough.
Wellington had the steepest valuation drop, according to the new QV data. Photo / Getty Images
Data all negative
Despite widespread talk of a housing market recovery, the data for Auckland and major cities in New Zealand was all negative.
Wellington had the largest decline of 23% when values tumbled from $1.09 million around late 2021 to $841,000 in December.
Auckland regional values peaked at $1.54m in late 2021 but by December 31, 2024, were only $1.24m, down 19.2%, according to the data released exclusively to the Herald today.
Hamilton’s $919,951 at the peak was by December $789,995, down 14.1%.
Tauranga’s $1.20m peak was down 15.8% to $1.01m.
Christchurch had the lowest valuation decline, from $801,614 at the peak to $766,388 by December, only 4.4% down. Its rises tend to be less spectacular so it’s no surprise that its falls are not as great as elsewhere. Christchurch’s peak was not at the end of 2021, often put at October. Instead, values in that city peaked in February 2022, a QV spokesman said.
Dunedin’s home value decline has been 11.1% since the peak, from $725,853 to $645,378.
National home values were $1.06m at the peak but fell 15.2% to $902,414.
Auckland residential values feel more steeply than national values. Photo / Fiona Goodall
Auckland values -15.5% to -20.1%
QV then drilled down into various Auckland areas to ascertain the fall from the peak-to-December period and provide that data to the Herald.
QV found the Waitākere area suffered the biggest value drop from $1.23m to $976,000 (20.8% fall). That area includes Swanson, Henderson Valley, Sunnyvale, Ōrātia, Waiatarua, Laingholm, Parau, Cornwallis, Huia, Whatipū, Karekare, Piha, Anawhata, Bethells / Te Henga, and Waitākere township.
Valuations in Manukau fell 19.6% from $1.38m to $1.11m. Manukau includes Drury, Botany Downs, Ardmore, Howick, Karaka, Manurewa, Ōtara, and Flat Bush.
Central Auckland, home to thousands of apartments in its CBD area, had the next steepest drop, down 19.3% from $1.73m at the peak in late 2021 to $1.39m by December. Ponsonby, Grey Lynn, Herne Bay, Western Springs, Newton, and Freemans Bay are captured in this area.
Franklin valuations were down 16.9% from $1.07m to $890,000. That area includes Karaka, Ardmore, Clevedon, Whitford, Maraetai, Kawakawa Bay, Orere Point, Pukekohe, Waiuku, and Beachlands.
Homes to the north didn’t fall in value as much as elsewhere.
The least affected Auckland area, which suffered the lowest declining values, was Rodney, where values fell 15.5% from $1.46m to $1.23m. That area includes Kawau Island and Kumeū/Huapai, Helensville, Warkworth, Matakana and Wellsford.
North Shore valuations fell 15.7% from $1.71m to $1.44m during the peak-to-December period. That area includes Albany, Greenhithe, Pinehill, Birkenhead, Northcote, Glenfield, Hillcrest, Devonport, Belmont and Takapuna.
What does it mean for rates?
Rates are only partly affected by valuation changes but people within the sector are beginning to ask what such dramatic falls, particularly in Auckland, could have on rates bills.
They also wonder what will happen if valuations continue to decline at these relatively steep rates.
Auckland Council’s rating valuation is a three-yearly assessment, determined by house sale prices on a specific date.
“We use these valuations as a guide for setting your rates,” it says, citing other factors which also affect rate assessments.
The law requires all councils to revalue properties within their boundaries every three years. Auckland’s last revaluation was in June 2021.
“Our next property revaluations are now in progress. We expect to send valuation notices to property owners in 2025,” the council says.
“An increase in your property value may not mean you pay more in rates. Any rates increase is determined by your property value increase compared with the average increase across the Auckland region.
“If your property has increased by more than the average, you may pay more than the average 3.5% rates increase for the 2022/2023 year. Revaluation does not affect the amount of money we collect from rates – it helps us work out everyone’s share of rates,” it says.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
