Luxury house market shifts south

Our nation’s luxury housing market is increasingly driven by southern regions; Otago has overtaken Auckland as New Zealand’s most expensive prestige property market for the first time.

New analysis from Ray White Group economist Atom Go Tian shows New Zealand’s luxury housing market peaked at a median price of $2.26 million during the pandemic boom before correcting to around $1.9 million. Prices have since stabilised, edging up to $1.93 million.

However, the national figure masks major differences between regions. Otago has emerged as the standout performer, with luxury median prices climbing from $2.3 million in 2024 to $2.7 million in 2026.

Much of that growth has been concentrated in the Queenstown-Lakes district, where limited land supply, lifestyle appeal and international buyer interest continue to drive demand.

Auckland, by comparison, has remained relatively flat. The region’s luxury median has hovered around $2.5 million for the past three years and recorded only 4.4% growth over the past decade, including a 2.3% decline over the last year.

Auckland’s prestige market experienced much of its growth during the pandemic boom, while recent buyer demand has shifted toward lifestyle destinations and coastal holiday towns, so down south.

The report suggests some of the strongest long-term growth has come from traditionally cheaper prestige markets. Southland and the West Coast have both more than doubled in value over the past decade as buyers seek lifestyle properties outside the main urban centres.

At the suburb level, Queenstown-Lakes dominates the country’s fastest-growing luxury locations. Kawarau Falls recorded 240% growth over 10 years, reaching a median of $2.71 million, while Kelvin Heights rose 39% in the past year alone.

Arrowtown also continued its strong run, with luxury prices increasing 163% over the decade as buyers look for quieter alternatives near Queenstown. Christchurch suburb Fendalton was Canterbury’s only entry among the country’s top-performing prestige areas.

The suburb recorded 81% growth over 10 years alongside strong annual price gains, making it unusual among already-expensive luxury locations.