Dunedin Property Market Update – December 2025

The average Dunedin house price rose 2.9% in the past year, so while things look to be on the up once more, it’s very slow and steady. With declining interest rates and the economic outlook becoming more positive, 2026 could start to see an increase in buyer activity. 

Let’s take a look at the latest local data from REINZ.

House Prices

The median house price for Dunedin City in November was $625,000. This represents an increase of 4.2% from $600,000 in October and is up 2.9% from $607,500 at the same time last year.

The wider Otago region also recorded an increase in median prices, with the average rising to $732,000 in November. This is up from $715,000 in October and $708,000 in November last year.

Market Activity

While first home buyers continue to be the dominant buyer group across much of New Zealand, all buyer groups - including first-home buyers, owner occupiers and investors - are currently active in the Dunedin market.

In terms of pricing, most vendors are prepared to meet the market and price their properties accordingly. However, real estate agents are reporting that some local vendors are beginning to set slightly higher asking prices, based on the assumption that buyers may have access to more money due to lower interest rates. This isn’t always the case, and in some instances, higher pricing expectations are resulting in longer time on the market.

Open homes have been busy, with newer listings attracting the most interest. This activity tends to taper off the longer a property remains on the market. Auction rooms have also seen increased activity, with both attendance and clearance rates improving. Properties that do not sell under the hammer are often being successfully sold through post-auction negotiation.

The average Otago property spent 33 days on the market before selling. This is a significant improvement compared to 58 days in August and 45 days in November 2024.

Across the Otago region, 459 properties were sold. This is slightly lower than both October (485) and November last year (488).

In Dunedin City specifically, there were 225 sales, again slightly down from October (226) and November 2024 (233).

Market Changes

As has been the case over recent months, the market remains relatively stable, with only minimal price growth across the year. While overall sales numbers are slightly lower, they remain broadly in line with recent trends. It’s expected that listing numbers will increase again following the Christmas holiday period.

Low interest rates and an improving economic outlook suggest some upward movement may continue into 2026, although the pace of this growth remains uncertain.

Our recommendation? If you’re thinking about buying a home in 2026, or simply want to understand what you could afford, now is a great time to have a conversation with our Dunedin mortgage advisers. We can guide you through the entire process, from working out your deposit and borrowing power to understanding the price range you should be looking in. Being pre-approved can also make all the difference when the right property comes along.

Get in touch with Loan Market Dunedin today for an obligation-free chat, and let’s help you take the next step towards getting on the property ladder in 2026.

Source: REINZ