Dunedin Market Update - April 2025

There’s been a bit happening in the property and financial markets lately, and especially in the global consumer market with the tariffs being introduced. How this fully plays out here in New Zealand is yet to be seen, however, it’s tipped that the Official Cash Rate (and therefore interest rates) may go lower than first expected.

Here’s how the local property markets are looking right now…

HOUSE PRICES

The median house price for Dunedin City in March was $600,000, which is down slightly from $615,000 in February, but up from a median price of $595,000 this time last year. 

Across the Otago region (which includes the Central Otago, Clutha and Waitaki areas too), the average house price sits at $661,000 for the month. While this is up 0.8% on the month of February, it is down significantly on this time last year, with a decrease of 8.8% since March 2024.

MARKET ACTIVITY

Both first home buyers and owner-occupiers are still active in the Dunedin real estate market. Real estate agents still report that fewer investors and overseas buyers are coming through open homes than in the past. 

Attendance at open homes remains steady, especially for houses new to the market. Real estate agents report that some vendors are still holding out for too-high prices, and as such, some properties are sitting on the market for quite some time with very little activity. Right now, it is definitely a buyer's market, with plenty of properties on the market to choose from. If a property doesn’t sell fairly soon after listing, then these properties often see very little interest as time goes on. 

Real estate agents have also noticed an increase in buyers not having their finances pre-approved, which, despite the amount of choice, is still crucial in securing their first-choice property.

Recently, auctions have had mixed results, with some properties selling under the hammer and many others selling in post-auction negotiations.  

There were 221 properties sold in Dunedin City throughout March. This is a significant increase from February, where 175 were sold, and March 2024, where 159 were sold. 

MARKET CHANGES

There’s no denying that the local property market is beginning to become more active, with more properties hitting the market and more monthly sales. Whether prices will continue to rise or plateau over winter is yet to be seen, with many real estate agents predicting that house prices are unlikely to jump much in the near future. 

This makes it a great time to be a buyer, and especially one who is pre-approved and has their finance ready to go. Interest rates are low and are expected to keep falling, and as mentioned above, the Official Cash Rate is expected to drop even more than originally predicted. Pair this with plenty of choice and stable house prices, and it is definitely sitting in the buyer's favour right now. 

If you are planning on buying a first home, a rental property, or are wanting to make the move between homes, then get in touch with our Dunedin mortgage advisers. 

Our team of experts can help you understand your current financial position and align it with your property goals. Whether that’s working out if you have enough for a first home deposit, are looking to see how much equity you have towards an investment property, or are wanting to make a smooth transition between homes, then we can help. 

Get in touch with Loan Market Dunedin today and book your free appointment with us. 

Source: REINZ