Dunedin Property Market Update - June 2025
Winter is well and truly here, with slightly fewer new property listings hitting the market in recent weeks. We often see a slight cooling of the market over winter, and this year appears to be no exception.
Let’s take a look at the latest local data from REINZ…
HOUSE PRICES
The median house price for Dunedin City in May was $600,000. This is exactly the same as the month prior and up 5.3% on this time last year.
Across the Otago region, the median house price sits at $659,000, which is down significantly (12.1%) on the month prior. Compared to this time last year, the drop is only small at a 0.2% decrease, so median housing prices across the region are pretty much on par with the 2024 prices.
MARKET ACTIVITY
Both first home buyers and owner-occupiers were the most active in the property market this month. Investors, both local and from out of town, are still remaining quiet, potentially waiting to see what will happen with the cost of borrowing over the next few months and if the interest rates will continue to drop.
Open home attendance remains strong for new listings; however, properties that have been on the market for a while might be hearing crickets. Homes that are well priced are moving well; however, some vendors continue to hold out for the top dollar, and ultimately, these are often the ones missing out on the sale. Buyers are really in control of the market at the moment, and they know what they will pay for a home, or otherwise, they will often move on.
Auction clearance rates saw a slight increase, with a few more properties sold under the hammer than in recent months. Properties that fail to sell at auction are still receiving good clearance post-auction, with buyer/vendor negotiations happening.
During May, there were 203 properties sold in Dunedin City, which is a decent increase on April (163) and May 2024 (178).
Across Otago, there were 441 properties sold. Again, a significant increase compared to April (389) and May 2024 (384).
MARKET CHANGES
Local real estate agents report they are seeing steady interest and listings, and that while things aren’t booming, they certainly aren’t dropping either. It’s likely that as we continue to move through winter, prices will remain stable and listing numbers will likely drop as vendors often hold out until Spring before listing their property.
While the cost of living remains high, for those who are in a position to do so, now is a great time to buy a home or investment property. House prices remain on the lower side, interest rates continue to fall (and are expected to continue doing so), and there are plenty of properties on the Dunedin property market to choose from.
While there is less pressure and competition from other buyers, we do still recommend getting pre-approved as soon as you can. This gives you the confidence to actively search for your dream property, knowing exactly how much you can afford to spend and that you are ready to make a move when the right property appears.
No matter whether it’s a first home, next home, or investment property, our Dunedin mortgage advisers can help you get prepared to make your next big property move. Book your free appointment with our team today.
Source: REINZ