What's happening with Palmerston North house prices?

The average price of a Palmerston North property is $646,125 (CoreLogic, June 2024).

Palmerston North house prices are up 2.34% over the last three months (REINZ). And they are 0.26% down over the last 12 months.

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

However, after that peak in November 2021, house prices fell 18.79% before bottoming out in May 2023.

Today, Palmerston North house prices are down 16.34% compared to their peak. That means prices have risen 3.01% since the bottom of the market.

At the absolute bottom of its property cycle, Palmerston North was 25.47% undervalued.

Today, property prices in Palmerston North are undervalued 2.83%.

That suggests there is neither a buying or selling opportunity in Palmerston North.

I track the value of 16 suburbs in Palmerston North. The most expensive suburb is Aokautere, which has an average house value of $1,006,850. While the most affordable suburb is Westbrook, which has an average house value of $505,200.

I track the value of just 1 suburb in Palmerston North. It's called Westbrook and you can see how the average property value is changing in the graph below.

I track the value of 16 suburbs in Palmerston North. The most expensive suburb is Aokautere, which has an average house value of $1,006,850. While the most affordable suburb is Westbrook, which has an average house value of $505,200.

Over the last 24 months of all Palmerston North suburbs (June 2022 - June 2024, Cloverlea had the slowest-falling house prices. They have gone down -2.30% over that period.

The suburb that fell the fastest over that period was Hokowhitu. Property values in this suburb fell by 6.83% over those 2 years.

Here's how rents are changing in Palmerston North. Over the last four years (October 2020 - October 2024) the median rent has gone up $120 a week. That's 6.78% a year (on average).

Over the last 12 months, rents have gone down. They are down 5.45% ($30 a week) year on year.

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

Some call it the RV (Rateable Value) or GV (Government Value).

Why do people care? Well, if you go on TradeMe (or another website), you’ll almost always see the council’s valuation for the property. So even if the seller hasn't advertised a price, you can get a feel for what the property might sell for.

This table shows whether the average property is selling above or below CV across Manawatu-Wanganui.

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

This map lets you find out for yourself.

Each area represents a different suburb, and the colour of the area represents how quickly house prices have increased over the past 20+ years.

The redder the area ... the quicker house prices have grown in that suburb.

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

So, which suburbs in the Palmerston North property market have the highest gross rental yields?

Navigate the map to find the suburbs where houses produce the most cash for their investors.

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.

• Horowhenua District property market
• Manawatu District property market
• Rangitikei District property market
• Ruapehu District property market
• Tararua District property market
• Whanganui District property market