Market momentum shifts to premium segment
Atom Go Tian Senior Data Analyst Ray White Group
New Zealand’ s housing market has turned a corner – but it’ s not picking up where it left off at the last peak.
Instead, recovery is reshaping the landscape, with momentum firmly anchored in the mid-to-premium price tiers.
Ray White Group senior data analyst Atom Go Tian says that a 20 per cent lift in sales across New Zealand since the market trough of 2022 signals growing buyer confidence. However, the bounce-back isn’ t evenly spread.
“ What’ s emerging is a new centre of gravity. Homes priced between $ 500,000 and $ 1 million have become the backbone of the market, with this segment accounting for more than half of all completed transactions.
“ At the same time, premium sales above $ 1 million have found their rhythm, following the volatility of 2020-2022, when high-end sales surged to 40 per cent of the market before dropping away.
“ This market segment has now settled into a sustainable 30-32 per cent market share, with 21,620 transactions in 2024, suggesting that confidence is returning among well-heeled buyers, who are re-engaging with the market at predictable levels.”
While the top and middle tiers of the market have shown resilience, the story is more subdued at the affordable end. Properties priced under $ 500,000 – which once made up more than half of all sales in 2015, now represent just 12 per cent of all market activity.
“ Although this segment has seen a modest rise from 6,191 transactions in 2022 to 8,323 in 2024, it reflects stabilisation rather than any meaningful change, as access to affordable housing remains one of the most pressing issues in the market.”
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