Dunedin house prices up $25,000

House sales in Dunedin remain “steady”, with latest data from the Real Estate institute (REINZ) showing almost identical sales figures from the same time a year ago.

Last month, 172 residential properties were sold in the city, compared to 170 in September, last year.

The median house price for Dunedin has risen by $25,000 over the past 12 months.

“Dunedin’s median price increased by 4.3 percent year-on-year to $605,000,” REINZ chief executive Jen Baird said.

“The most active buyer groups were those at the top end of the market and first home buyers. Investors are noticeably quiet. Some vendors are enthusiastic about their property’s value, which increases the days to sell.

“Attendance at open homes received good numbers, especially for newer listings, but gradually faded within a week if the property had been on the market for multiple weeks.

“The auction room activity was steady—if a property didn’t sell under the hammer, it was sold very soon after the auction.

“Local agents feel that market sentiment for the region has remained unchanged over the past months.”

The median is still $25,000 down on the same time three years ago and well down of the city's record median of $685,000, set in February 2022.

However, the decline in interest rates and steady prices creates “a sense of confidence” in the market, she said.

Image and data supplied / REINZ

Earlier this week the Government announced the Official Cash Rate (OCR) to 4.75 percent.

Baird said that could attract more buyers into the market.

“The OCR rate reduction is anticipated to make borrowing more affordable, potentially attracting more buyers to the market, increasing property transactions and heightened demand. The easing inflationary pressures, combined with the OCR reduction, suggests that life may become more affordable for New Zealanders.

"However, it's important to note that while this development might improve borrowing capacity and housing affordability, it doesn't provide a direct indication of increased property value.”

In Otago, the Central Otago District experienced the biggest year-on year median price rise (up 12.5 percent). Queenstown Lakes was up 2.9 percent, while prices in both Waitaki and Clutha dropped 12 percent and 17.7 percent, respectively.

Nationally, the median price decreased 2.3 percent year-on-year, from $799,000 to $781,000.

Taken as a region, Otago experienced the third biggest increase in listings with a  34.1 percent rise, behind Gisborne (up 50 percent) and Wellington ( up 36.1 percent).

For New Zealand, excluding Auckland, there was a 20.4 percent increase in listings year-on-year.

Main image: House prices in Dunedin remain stable.