Southland Housing Market Shows Resilience in 2025

Southland's new listings rise 30.6% in January, signalling increased activity in the region.
Local market experts predict a strong year ahead with favourable conditions for buyers and sellers.
Lending rate drops and pre-approvals drive high buyer interest across Southland and Invercargill.

The Southland housing market has kicked off 2025 with impressive momentum, reflecting a combination of increased listings, stable price growth, and rising buyer interest. Realestate.co.nz data reveals an 11.2% increase in housing stock year-on-year, with 614 properties available for sale in January. New listings surged 30.6% compared to January 2024, demonstrating strong seller confidence and activity in the region.

Ray White Invercargill's Jaqui van Dam highlighted the market's positive trajectory, stating, "The Southland housing market has had a strong start to 2025, with listing numbers clearly on the rise. This increase in supply reflects renewed activity and optimism in the market. We anticipate a productive year ahead, particularly as lending rates indicate potential reductions until mid-year, further boosting buyer confidence and market momentum. Overall, the outlook remains positive, with favourable conditions supporting both buyers and sellers."

Average asking prices in Southland rose to $557,753 in January, up 1.2% year-on-year, contrasting with a slight national decline. Southland's price growth and faster sales pace—currently projected at 19 weeks compared to its long-term average of 25 weeks—highlight a balanced and active market.

Mandy Jordan, owner of Mortgage Supply Southland, noted, "2025 has started off with record inquiry. Just in January, we've submitted over 30 applications, with most of them being first home buyers. This signifies the next few months should have fierce activity as we'll see more pre-approved clients out there in the market looking for homes. Just as much as ever, the bank pre-approval will be the golden ticket in Southland. Combine this with a predicted OCR drop in February, and we're in for some serious finance and property action."

Southland’s robust start to 2025 signals a thriving year ahead. The combination of abundant housing stock, stable prices, and easing interest rates provides a perfect backdrop for both first-time buyers and seasoned investors. Invercargill remains a standout destination for property activity, as the region positions itself as a hub of opportunity.