Property Market
5 min read
What's happening with Central Otago house prices?
Council area of Otago
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.
What's happening to Central Otago house prices?
The average price of a Central Otago property is $842,279 (CoreLogic, June 2024).
Central Otago house prices are up 3.18% over the last three months (REINZ). And they are 0.67% up over the last 12 months.
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Quick Facts
- The average price of a Central Otago property is $842,279 (CoreLogic, September 2024)
- Over the last 3 months property prices in Central Otago have gone up 3.18%
- Central Otago property prices increased 6.03% per year (on average) in the 20 years between September 2004 - September 2024 (REINZ)
- The average rent in Central Otago is $550 per week (Tenancy Services, April 2024)
How are Central Otago property prices changing?
Central Otago house prices soared after the Covid-19 pandemic began. House prices started out 26% below the eventual peak of the market.
However, after that peak in April 2022, house prices fell 6.84% before bottoming out in September 2022.
Today, Central Otago house prices are down 1.70% compared to their peak. That means prices have risen 8.09% since the bottom of the market.
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Where is Central Otago in its property cycle?
At the absolute bottom of its property cycle, Central Otago was 26.41% undervalued.
Today, property prices in Central Otago are overvalued 21.57%.
That suggests there is a selling opportunity in Central Otago.
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Central Otago suburb prices
I track the value of 9 suburbs in Central Otago. The most expensive suburb is Mount Pisa, which has an average house value of $1,372,250. While the most affordable suburb is Ranfurly, which has an average house value of $431,950.
I track the value of just 1 suburb in Central Otago. It's called Ranfurly and you can see how the average property value is changing in the graph below.
I track the value of 9 suburbs in Central Otago. The most expensive suburb is Mount Pisa, which has an average house value of $1,372,250. While the most affordable suburb is Ranfurly, which has an average house value of $431,950.
Over the last 24 months of all Central Otago suburbs (June 2022 - June 2024, Mount Pisa had the fastest-growing house prices. They have gone up 9.41% over that period.
The suburb that grew the slowest over that period was Alexandra. Property values in this suburb grew by 0.29% over those 2 years.
What is the Central Otago rental market like?
Here's how rents are changing in Central Otago. Over the last four years (April 2020 - April 2024) the median rent has gone up $110 a week. That's 5.74% a year (on average).
Over the last 12 months, rents have gone up. They are up 1.85% ($10 a week) year on year.
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Are properties selling above or below CV in Central Otago?
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 Otago.
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 Otago property market here.