Central Otago and the Lakes District have overtaken Auckland as New Zealand’s most expensive property market, with new figures showing the region’s average asking price now sits more than $650,000 higher than the country’s largest city.
Latest data from realestate.co.nz reveals the Central Otago/Lakes District reached a record average asking price of $1.67 million in May, marking an increase of more than 20 percent compared with the same time last year.
The figures highlight a dramatic shift in New Zealand’s housing landscape over the past decade. In 2016, homes in the region were, on average, cheaper than those in Auckland. Today, the situation has reversed, with Auckland’s average asking price sitting just above $1 million compared with Central Otago/Lakes District’s $1.67 million.
The growth has been largely driven by soaring prices in Queenstown and Wānaka, where average asking prices now exceed $2 million and $1.7 million respectively.
Property analysts say the trend reflects changing lifestyle priorities among buyers, with scenic locations, outdoor living opportunities and flexible working arrangements increasingly influencing purchasing decisions.
The latest report also shows signs of growing confidence among sellers across the country. More than 9,500 new listings entered the market during May, the highest number recorded for the month since 2018.
The Coromandel led the country with a significant increase in new listings, while Otago, Southland, Nelson and Taranaki also recorded strong growth.
Nationally, house prices remained relatively stable, with the average asking price falling just 0.2 percent over the past year to $862,518.
While Central Otago/Lakes District captured headlines with its record-breaking prices, three other regions also reached historic highs for May. The West Coast, Southland and Marlborough all recorded new asking price records.
Meanwhile, stock levels across New Zealand increased by five percent compared with a year ago, giving prospective buyers more choice in many markets.
Despite increased supply nationally, available stock in Central Otago/Lakes District fell by more than 13 percent, suggesting continued strong demand in one of the country’s fastest-growing property hotspots.
The latest figures underscore the growing divide between New Zealand’s premium housing markets and regions where affordability remains under pressure, as buyers continue to navigate a changing economic and property landscape.
