Dunedin Property Market Update - February 2026

The Dunedin property market has started the year on a steady note, with modest price growth and consistent buyer activity across the region. Here’s a snapshot of what’s happening locally and what it could mean if you’re considering buying or selling in 2026.

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House Prices

The median house price in Dunedin City reached $618,000 in January, marking a 4.7% increase from December’s $590,000. Compared to January last year, prices are up 1.6% from $608,000.

Across the wider Otago region, median prices also edged higher, sitting at $720,000 in January. This is up from $710,000 in December and $675,000 at the same time last year.

While growth remains moderate, these figures reflect a market that is gradually strengthening.

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Market Activity

All buyer groups remain active in the Dunedin market, although investor enquiry slowed slightly over the holiday period which is a typical seasonal trend.

With the market holding steady in recent months, vendors have generally been realistic with pricing expectations, listing properties in line with current market conditions.

Open home attendance has increased week by week as buyers return from summer holidays. Local agents are reporting strong turnout, particularly for newer listings. Auction activity also remained solid throughout the holiday period, with many properties selling under the hammer.

The average property in Otago spent 52 days on the market, three days longer than this time last year. This is consistent with the usual slowdown over the summer holiday period and statutory shutdowns.

Across Otago, 250 properties were sold in January. While this is down from December’s 425 sales, it is comparable to January last year (243).

In Dunedin City specifically, there were 130 sales, down from 212 in December but slightly higher than January last year (111).

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Market Outlook

The Dunedin and wider Otago property markets remain relatively stable, with modest annual price growth and sales volumes tracking closely to this time last year.

Overall, conditions appear balanced - creating opportunities for both buyers and sellers. Industry commentary suggests sales activity is expected to strengthen in the coming months, with steady pricing and even supply and demand.

With interest rates remaining low and the broader economic outlook gradually improving, there is the potential for continued slight upward movement, though this depends on wider economic factors as we move through 2026.

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Thinking About Buying in 2026?

If you’re considering purchasing a property this year, or simply want clarity around what you could afford, now is a good time to start the conversation.

Our mortgage advisers at Loan Market Dunedin can guide you through every step, from understanding your deposit and borrowing capacity to helping you determine a realistic price range. Securing a pre-approval can help put you in a stronger position when the right property comes along.

Get in touch with our Dunedin mortgage advisers today for an obligation-free chat and take the next step towards achieving your property goals in 2026.

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Source: REINZ