Southland Property Prices Hit Record High
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Southland’s property market has reached new heights, with average asking prices hitting a record $564,291 in May. According to realestate.co.nz’s latest data, that’s a 6.5% jump compared to the same time last year — the highest recorded since the platform began tracking prices 18 years ago.
While New Zealand’s national market only rose by 0.8% year-on-year, Southland stood out as one of the top-performing regions. It was beaten only by Taranaki (13.1%), Wellington (12.9%), and Otago (7.4%). Month-on-month, the increase was also significant, with prices up 6.4% from April.
Sarah Wood, CEO of realestate.co.nz, said the results reflected growing interest in regional markets offering better value for money. “Buyers are clearly recognising the value Southland offers,” said Wood. “Invercargill in particular continues to attract attention with its mix of affordability, lifestyle, and infrastructure improvements.”
However, this surge in prices is happening as stock levels fall. Listings in Southland dropped 2.7% compared to May 2024, and were down a sharper 15.3% from April this year — the second-largest monthly fall in the country. Wood suggested that the surplus of listings seen over the past year might now be clearing, which could push prices even higher.
“Invercargill is proving resilient at a time when some other areas, such as Central Otago/Lakes District and Gisborne, are seeing year-on-year declines,” she said.
Local mortgage adviser Mandy Jordan from Mortgage & Insurance Supply Southland confirmed the local market’s energy. “We are seeing an influx of first-home buyers, as well as clients looking to purchase investment properties.” She encouraged potential buyers to act quickly. “With more properties going to multi-offer, the shorter conditions can make your offer far more appealing to the vendor.”
Jordan also highlighted the financial changes ahead. “The majority of my clients have fixed rates expiring in the next six months. It’s exciting showing those clients what happens to their loan terms when the interest rate reduces and they keep their payments the same. It’s an exciting time in finance and property in Southland!”
Real estate activity on the ground also appears to be picking up. Jacquai van Dam from Ray White said, “It’s been very clear over the last few weeks that momentum among first-home buyers has increased. Properties that had been sitting on the market longer than expected are now receiving multiple offers.” She noted higher-end sales are creating movement throughout the market. “Overall, Southland remains a fantastic place to step onto the property ladder. The team at Ray White is full of energy and excited about what the rest of the year has in store.”
Looking ahead, with the official cash rate recently reduced and interest rates beginning to ease, winter could present new opportunities for both buyers and sellers.