Dunedin Property Market Update - August 2025
With Spring around the corner, it seems that house prices might just be on the up once more, with the average house price in the city now sitting at $600,000.
Let’s take a look at the latest local data from REINZ…
HOUSE PRICES
The median house price in Dunedin City for July was $600,000. This is up 0.8% from $595,000 in June and up 4.8% from $572,500 in July 2024.
Across Otago, the median house price sits at $730,000, which is a 1.4% jump from June and a large 11.1% jump from this time last year, when the median price sat at $657,000.
There is no doubt that prices around most of the country are starting to shift upwards ever so slowly, and while it’s unlikely we see any huge jumps anytime soon, it’s an indicator that confidence in the market may be looking up once more.
MARKET ACTIVITY
First home buyers continued to be the dominant buyer group in the region, with investors dropping off a little in terms of interest and enquiry.
Real estate agents report that open home attendance is still steady, especially for new properties. After 10 or so days of being listed for sale, agents report there is a drop-off in interest. They also report that most vendors are meeting the market price-wise; however, there are still a few holding out for a higher than market value asking price. If you are looking to sell, it’s crucial to get the pricing right to avoid the property sitting on the market for weeks with little interest.
Right now, it's taking, on average, 58 days for an Otago property to sell. This is up 11 days on this time last year and is higher than we've seen for a while. While this might be good for first home buyers as it means less pressure, it's not so good for vendors looking for a quick sale or for those who have to sell their own home as a condition for buying a new one.
Auction clearance rates are still fairly sluggish; however, many properties that do go to auction, while not being sold under the hammer, are selling via negotiation afterwards, so this method of sale is still working in a roundabout way.
Across the Otago region, there were 383 properties sold in July, which is on par for this time last year (381) and up slightly on June (335). Out of this, 169 of these properties were sold in Dunedin City in July, compared to 158 in June and 195 in July 2024.
MARKET CHANGES
As it has the past few months, the local market remains stable, with some upward growth in pricing starting to occur.
Low interest rates, stable house prices, and little pressure to make quick moves offer buyers great conditions to buy, and while the cost of living remains high, those who are able to afford to buy a home right now would be encouraged to.
While we don’t expect to see any big market moves in the next while, it is likely there will be some upward movement when Spring and the warmer weather hits. This is often when vendors choose to list their properties, and buyers will have plenty of choice.
If you are looking to buy between now and early 2026, it’s a good idea to come and have a chat with us about getting pre-approved. This allows you to know exactly how much you can spend, and makes house hunting all the easier when listings begin to pick up again. It also puts you in a better position than other buyers who may not have been pre-approved, and allows you to move quickly with the sale to secure your dream property.
Our team of Dunedin mortgage advisers can help you from start to finish in buying your next home. Book your free appointment with us today.
Source: REINZ