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Southland house prices | How is the Southland property market going?
Everything you need to know about the Southland Property Market before you buy or invest in the Southland region. Data. Analysis. Southland House Prices.
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, holds a Bachelor of Communication (Honours) from Massey University.
Southland's median house price is $487,000
Southland house prices
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As at September 2024, the median house price in Southland is $487,000. This is up from $193,500 10 years earlier. That means that the median Southland property increased in value by 9.67% each year, or $29,350 on average.
The most expensive suburb in Southland is Otatara, which has a median house price of $722,900 and is located in the Invercargill City district. That means that Otatara's median house price is 148% of Southland’s median.
The least expensive suburb in Southland is Mataura, which has a median house price of $260,600 and is located in the Gore District district. That means that Mataura's median house price is 54% of Southland’s median.
Over the last 24 months (Sep 2022 - Sep 2024), Wyndham had the fastest-growing house prices in all of Southland, at 6% per year.
The suburb that grew the slowest over that period was Hargest, which grew at a rate of -3% per year.
Southland's house price is 17.13% above its long term average
Is Southland over or undervalued?
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Southland house prices look relatively expensive compared to where we'd expect them to be.
In the above graph, when the purple line is below the baseline (black line), Southland's house values are undervalued. This suggests there is a buying opportunity in the region.
When Southland’s house values are above the baseline, other regions have buying opportunities.
How is this calculated? Click on the accordions below to find out.
More from Opes Partners:
Where do house prices grow the fastest in the Invercargill property market?
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.
Which Invercargill suburbs have the highest yields?
Gross yields vary widely depending on which suburb you chose to investigate.
So, which suburbs in the Invercargill property market have the highest gross rental yields?
Navigate the map to find the suburbs where houses produce the most cash for their investors.
Are properties selling above or below CV?
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.
Where are the most affordable properties in Southland?
The map below depicts which districts within the Southland Region have the most and least affordable house prices (REINZ, September 2024).
The darker the district, the more expensive the median house price for that area.
The Southland District is the most expensive district within the Southland Region, with properties reaching a median price of $530,000 in September 2024.
By comparison, the Gore District is the most affordable, with a median house price of just $465,000. That's a $65,000 difference compared to Southland District.
Where are house prices most over and undervalued within the Southland region?
This map shows a breakdown of how over or under-valued each council area is right now in the Southland property market. These figures are calculated exactly the same way as the HPI based graph in the above section.
Southland District appears to be the most overvalued area in Southland. House prices there are about 22.25% above where we would usually expect them to be over the long term.
Invercargill City, on the other hand, appears to be the least overvalued in Southland. House prices in this district appear to be 15.22% above where we would expect them to be.
This means that we've got greater confidence that Invercargill City house prices will increase faster over the next 5-10 years compared to Southland District.
Which part of Southland gets the highest population growth?
The map below illustrates the projected population growth for each district within the Southland Region over the next 25 years (2023 - 2048).
The darker the district, the more the population is predicted to expand in that area.
Over this period, Invercargill city is expected to see the most growth of all the council areas within the region. 5.28% in total.
By contrast, Gore district is expected to shrink by -3.46% over the same timeframe.
How are Southland's house prices changing right now?
Southland's capital growth rate
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The above graph shows how quickly house prices have increased or decreased over the previous 12 months. This is also known as ‘capital growth’.
So does this show how the property market is going right now?
Yes and no.
It shows how expensive properties are today compared to 12 months ago.
While this will give us a good sense of how property values have changed, it’s not the only thing to consider.
You might also look at how quickly property values are going up (or down) from month to month, the number of property sales and how quickly properties are selling.
What is the median rent in Southland?
Southland's median rent
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The above graph shows the median rent within a given month.
The data comes from the Ministry of Business Innovation and Employment (MBIE) and is provided through their Tenancy Services website.
Their data is based on all the rental bonds lodged by private landlords within the month.
What is the annual increase in rents in Southland?
Southland's annual increase in rents
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This graph shows the annual growth in median rents.
The data also comes from the Ministry of Business Innovation and Employment (MBIE).
How many listings are currently available in Southland?
Southland's current listings (Housing stock)
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This graph shows current property listings, with data sourced from realestate.co.nz.
It shows the number of listings that are currently available on the website per month.
You might be wondering: “How do the number of listings impact house prices?”
If many listings are available, then people will think there is lots of supply. This means that people feel like they can take their time choosing a property.
This leads to less competition and softer house prices.
On the other hand, if there aren’t many listings available, people will feel like there is a shortage of houses. This leads to FOMO (fear of missing out).
This makes people more competitive and more likely to bid up house prices.
How many properties are sold per year in Southland?
Southland – Number of properties sold per year
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The above graph shows the total number of properties sold over the prior 12 months. For example, if looking at the data for August 2023, the graph will show all the sales between September 2022 – August 2023.
The data comes from the REINZ Market Insights Report and The Real Estate Institute of New Zealand (REINZ) collects data directly from agents.
You might be wondering: “How does the volume of sales impact house prices?”
They don’t impact house prices on their own. But a high number of sales represents a hot property market.
That’s because there are a lot of people out there buying property.
That’s why when sales volumes are high, property prices typically increase at the same time.
When property sales are falling, typically, property prices are also soft.
Invercargill City suburb prices
Invercargill City
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Invercargill City is made up of 24 suburbs. The most expensive suburb is Otatara, which has an average house value of $722,900. While the most affordable suburb is Bluff, which has an average house value of $328,750.
Over the last 24 months of all the Invercargill City suburbs (Sep 2022 - Sep 2024), Clifton had the fastest-growing house prices at 3.79% per year.
The suburb that grew the slowest over that period was Hargest, which grew at a rate of -3.05% per year.
Southland District suburb prices
Southland District
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Southland District is made up of 13 suburbs. The most expensive suburb is Te Anau, which has an average house value of $679,500. While the most affordable suburb is Tuatapere, which has an average house value of $309,250.
Over the last 24 months of all the Southland District suburbs (Sep 2022 - Sep 2024), Wyndham had the fastest-growing house prices at 6.33% per year.
The suburb that grew the slowest over that period was Winton, which grew at a rate of -0.43% per year.
Gore District suburb prices
Gore
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Gore District is made up of 3 suburbs. The most expensive suburb is Gore, which has an average house value of $460,450. While the most affordable suburb is Mataura, which has an average house value of $260,600.
Over the last 24 months of all the Gore District suburbs (Sep 2022 - Sep 2024), East Gore had the fastest-growing house prices at 4.08% per year.
The suburb that grew the slowest over that period was Mataura, which grew at a rate of -3.04% per year.
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.
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.
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