Southland Property Market Showing Strength as Buyer Confidence Builds
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The Invercargill and wider Southland property market is continuing to show strong signs of resilience, with new data and local insights pointing to growing confidence among buyers and steady upward momentum in values.
According to the latest Home Value Index, property values in Invercargill rose by 1.1% in February, with annual growth sitting at 6.1%, making it one of the standout regions in New Zealand. The median value in Invercargill is now $515,067, with the market sitting at a new peak.
Cotality NZ Chief Property Economist Kelvin Davidson said regional centres like Invercargill are benefiting from a strong economic base.
“Alongside Ashburton, Timaru, Gore, and Southland District, Invercargill is the other part of the country where property values are at a new peak. Affordability will be a factor in these areas, but the shape of the economy – with the primary sector performing well at present – will also be playing a role in supporting property values.”
He added that while national growth remains modest, there are early signs of a recovery forming.
“With sales activity trending upwards for some time now, mortgage rates down, and the economy showing signs of a pick-up, a re-emergence of modest gains in property values this year would not be a surprise.”
Despite this, he cautioned:
“Given the cautious attitude that still prevails among both buyers and sellers, we’d need to see at least two to three more monthly increases before calling it a trend.”
Read the Cotality NZ report here
Local Market Heating Up
On the ground in Southland, mortgage adviser Mandy Jordan from Mortgage Supply says activity levels are already reflecting strong buyer intent.
“Southland is financially strong. We are seeing multiple offers on homes every week indicating good homes in the right price range are moving quick.”
Jordan said buyers are not only active, but decisive.
“Clients are motivated to buy with high and fast conversion rates.”
She also pointed to improved lending conditions helping drive activity.
“Lender appetite is strong due to first-home-buyer incentives and easing of affordability calculations.”
For many buyers, engaging early in the process is key.
“Anyone looking to buy in the next 3-6 months should contact us sooner rather than later so we can present their best foot forward when their future home becomes available.”
Jordan also noted that for most buyers, cost barriers to advice remain low.
“As always, we generally don't charge fees for bank settled lending because the banks pay us a commission.”
Outlook: Positive but Measured
Nationally, property values rose 0.2% in February, marking the strongest monthly increase in four months, although still down 1.2% year-on-year and 17.3% below the 2022 peak.
While the national picture remains cautious, Southland’s performance highlights a region benefiting from affordability, a strong primary sector, and increasing buyer confidence.
With listings tightening and buyer demand lifting, Invercargill and Southland appear well-positioned to continue leading the country’s regional property recovery—particularly for first-home buyers and investors looking for value.
