What's happening with Palmerston North house prices?

Council area of Manawatu-Wanganui

Explore Palmerston North's property market for the latest trends, house prices, market cycles, rental yields, and top investment suburbs

Author: Ed McKnight

Our Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.

Reviewed by: Laine Moger

Journalist and Property Educator with six years of experience, holds a Bachelor of Communication (Honours) from Massey University.

Last Updated: 24 Mar 2025

Copied

What's happening to Palmerston North house prices?

The average price of a Palmerston North property is $637,895 (CoreLogic, February 2025).

Quick Facts

The average price of a Palmerston North property is $637,895 (CoreLogic, February 2025)
Over the last 3 months property prices in Palmerston North have gone down 1.60%
Palmerston North property prices increased 5.22% per year (on average) in the 20 years between February 2005 - February 2025 (REINZ)
The average rent in Palmerston North is $560 per week (Tenancy Services, November 2024)

How are Palmerston North property prices changing?

Palmerston North house prices soared after the Covid-19 pandemic began. House prices started out 34% below the eventual peak of the market.

Where is Palmerston North in its property cycle?

At the absolute bottom of its property cycle, Palmerston North was 25.45% undervalued.

Palmerston North suburb prices

I track the value of 16 suburbs in Palmerston North. The most expensive suburb is Aokautere, which has an average house value of $1,076,400. While the most affordable suburb is Westbrook, which has an average house value of $501,050.

Over the last 24 months of all Palmerston North suburbs (February 2023 - February 2025, Milson had the fastest-growing house prices. They have gone up 1.14% over that period.

The suburb that fell the fastest over that period was Westbrook. Property values in this suburb fell by 5.31% over those 2 years.

What is the Palmerston North rental market like?

Here's how rents are changing in Palmerston North. Over the last four years (November 2020 - November 2024) the median rent has gone up $110 a week. That's 5.62% a year (on average).

Are properties selling above or below CV in Palmerston North?

One of the most common questions I get asked is: “Ed, are properties selling above or below their Capital Value (CV)?”

Where do house prices grow the fastest in the Palmerston North property market?

Where do house prices go up the fastest in Palmerston North?

Which suburbs in the Palmerston North property market have the highest yields?

Gross yields vary widely depending on which suburb you chose to investigate.

Other property markets to look into

If you found this article useful, then you might also like our analyses on the other property markets in New Zealand. You can read all about the Manawatu-Wanganui property market here.