Southland Property Market Defies National Downturn

• Southland median home prices hit record highs, with strong demand driving growth.
• New listings in Southland rose 7.3%, contrasting with the national decline in listings.
• Balanced market conditions in Southland offer steady opportunities for buyers and sellers.

Southland’s property market finished 2024 on a high note, standing out as one of New Zealand’s strongest regions amid a national slowdown. According to realestate.co.nz, Southland recorded a 15.3% year-on-year rise in the average asking price, reaching $549,211 in December—the highest figure for that month in the region’s history. In contrast, the national average asking price fell to $842,476, marking a significant decline.

Jacqui van Dam, Licensee Salesperson at Ray White Invercargill, highlighted ongoing demand across all property types and price brackets in the region. “Continuing demand for Invercargill property across all asset classes, and price bands was clearly evident in the closeout month of December for the 2024 year. The Reserve Bank of New Zealand shifting stance on Monetary Policy has, and we expect will continue to lead to a more affordable lending landscape for home buyers into 2025.”

The November REINZ report showed that nine of sixteen regions saw an increase in median dwelling prices year-on-year, with Southland leading at 17.7%. Invercargill recorded a 19.6% rise in median dwelling prices compared to November 2023, with a new median of $513,500. Median days on the market in Southland were 41, close to the national average of 42 days.

Mandy Jordan, owner of Mortgage & Insurance Supply Southland, noted strong buyer interest. “We’re seeing plenty of first home buyers, but also existing clients in the entry bracket that are ready to move up the ladder. Mandy believes it’s a year where bank pre-approval will be king for anybody looking to buy as lengthy finance clauses aren’t attractive in a busy market.”

New listings in Southland climbed 7.3% year-on-year, bucking the national trend, where listings fell to their lowest level for any December in 17 years. Southland was one of just five regions to record an increase in listings, providing more choice for buyers and keeping demand steady. Total housing stock in the region rose by 9.7% compared to December 2023, helping to balance price growth.

Southland’s rate of sale stood at 20 weeks, slightly below the long-term average of 25 weeks, reflecting balanced market conditions. This figure shows that supply and demand are well-aligned, unlike in other regions experiencing oversupply or slow sales.

Nationally, the property market saw record-low listings in December, with even major centres like Auckland and Wellington reporting their weakest listing levels in 17 years. Vanessa Williams from realestate.co.nz described the national market as “exceptionally lukewarm.” Yet, Southland’s robust performance highlights the value of understanding local dynamics when making property decisions.

Looking ahead to 2025, Southland’s affordability, growing interest from first-home buyers and investors, and balanced market conditions offer a promising outlook for the year. With optimism growing and new listings expected as the year progresses, local agents remain confident about continued momentum in Invercargill and the broader Southland region.