Dunedin Market Update - February 2025
January is typically a quieter month in the property market, thanks to many people being on holiday and many NZ businesses closing down for the first part of the month. Despite this, properties have continued to sell well in Dunedin over the past month and agents report good activity, which is expected to increase even further over the next few months.
Here’s what’s happening in the local market right now…
HOUSE PRICES
The median house price in Dunedin City for January was $608,000, which is an increase of 3.4% on December and an 5.7% increase on this time last year.
Across the Otago region, the median house price sits at $675,000 for January. This also takes into account Central Otago, Clutha and Waitaki. This price is down 3.6% on December and down 1.1% on this time last year.
MARKET ACTIVITY
Both first home buyers and owner-occupiers were equally active throughout January, however local investors appear to be a little more cautious about the market conditions.
Most of the Dunedin vendors have been meeting the market and are realistic about the price that their home will sell for. This is likely partially due to the fact that there are a lot of properties on the market right now, so if a home isn’t priced to the market, it’s likely buyers will have other options.
Despite January often being a quieter month, real estate agents report very high attendance at open homes. Auction rooms have also been getting good attendance.
During January, the average Otago property took 49 days to sell, this is 3 days less than this time last year, but still on the higher side due to the fact that properties typically take longer to sell and settle over the holiday period.
There were 233 properties sold in Otago in January, with 106 of these selling in Dunedin City. This is significantly less than December (due to the holidays), but still more than this time last year, showing that the market is definitely beginning to pick up once again.
MARKET CHANGES
Right now we are seeing great market conditions for buyers. There are plenty of properties to choose from, prices are still relatively low, and thanks to the continual OCR drops, interest rates continue to move downwards. Gaining finance is also fairly simple at the moment, with benefits like KiwiSaver Withdrawals and the First Home Loan available to some first home buyers who meet the criteria.
If you are planning to buy a first home, upgrade your home, or buy your first investment property in 2025, then get in touch with our team! Our Dunedin mortgage advisors can help you calculate your deposit, work out how much you will be able to borrow, and give you advice around reducing debt and expenses so that you feel confident in your buying ability. We'll then work with you for the entire approval and lending process!
As always, pre-approvals are a great idea, so get in touch to kick off the process!
Statistics source: REINZ