Property Market
What's happening with Thames-Coromandel District's house prices?
Explore Thames-Coromandel District's property market for the latest trends, house prices, market cycles, rental yields, and top investment suburbs
Property Market
1 min read
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: Andrew Nicol
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Monday was the day everything changed.
3 big, huge, massive changes came in. Together, they will impact both property investors and home buyers.
Let’s talk about the:
Here’s what changed and what it means for the next 6 months in property.
The average price of a Queenstown-Lakes property is $1,801,945 (CoreLogic, May 2024)
Queenstown-Lakes house prices are down -1.64% over the last three months (REINZ). And they are 10.60% up over the last 12 months.
Queenstown-Lakes house prices soared after the Covid-19 pandemic began. House prices started out 32% below the eventual peak of the market.
However, after that peak in February 2024, house prices fell 8.90% before bottoming out in June 2023.
Today, Queenstown-Lakes house prices are down 1.64% compared to their peak. That means prices have risen 7.98% since the bottom of the market.
At the bottom of its property cycle, Queenstown-Lakes was 22.45% undervalued. But now prices have caught up.
Today, property prices in Queenstown-Lakes are overvalued by 31.89%.
That suggests there is a selling opportunity in Queenstown-Lakes.
Queenstown-Lakes District is made up of 16 suburbs. The most expensive suburb is Arrowtown, which has an average house value of $2,384,750. While the most affordable suburb is Luggate, which has an average house value of $1,061,450.
Over the last 24 months of all the Queenstown-Lakes District suburbs (Jun 2022 - Jun 2024), Sunshine Bay had the fastest-growing house prices at 5.72% per year.
The suburb that grew the slowest over that period was Jacks Point, which grew at a rate of 1.51% per year.
Rents have been steadily increasing in Queenstown-Lakes. Over the last four years (April 2020 - April 2024) the median rent has gone up $223 a week. That's 8.88% a year (on average).
Over the last 12 months, rents have gone up. They are up 10.43% ($73 a week) year on year.
One of the most common questions I get asked is: “Ed, are properties selling above or below the Council Valuation (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.
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 Tauranga 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 Otago property market here.
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.
Ed, our Resident Economist, is equipped with a GradDipEcon, a GradCertStratMgmt, BMus, and over five years of experience as Opes Partners' economist. His expertise in economics has led him to contribute articles to reputable publications like NZ Property Investor, Informed Investor, OneRoof, Stuff, and Business Desk. You might have also seen him share his insights on television programs such as The Project and Breakfast.