“Overall, we’re seeing some green shoots across the board. But standalone houses are perhaps tending to lead the early recovery in terms of both consistency and scale of value gains,” Davidson said.
“More affordable detached housing seems to be appealing to buyers again, supported by easing mortgage rates. In contrast, values for townhouses and flats are a bit more hit-and-miss.”
Elderslie (Waitaki), Ngataki (Far North), and Evansdale (Dunedin) were among the 78 suburbs with house value growth of at least 5%, Cotality said.
Dunrobin and Tawanui (Clutha), and Mawheraiti (Buller) also made strong gains, all with median values below $650,000.
In the main centres, strong results were recorded in Dunedin, as well as Kelburn in Wellington (up 4.1%), Temple View in Hamilton (3%), Little River near Christchurch (3.1%) and Bethells Beach in Auckland (3%).
In comparison, just over half of suburbs (54%) saw values hold steady or rise for townhouses and flats.
Only 16% experienced growth of 2% or more.
But Davidson said the split between the property types is nothing major yet.
“Detached houses, particularly in smaller and more affordable suburbs, seem to be where the early recovery is taking hold,” he said.
“Townhouses and flats aren’t falling away, but haven’t risen on such a widespread basis yet either. In some locations, such as Auckland, this will more than likely reflect the large pipeline of new developments.
“While the market downturn appears to be behind us, the recovery in 2025 is far from uniform. There are plenty of challenges still in play, from weak economic growth to stricter debt-to-income rules. But overall, we’re tracking in a cautiously upwards direction.”
Earlier this week, council valuation figures for Auckland showed average residential property values have dropped by 9% since the last CVs were released in 2021.
