The average asking price for a three-bedroom home in the Central Otago-Lakes area has climbed to $1.6 million, bumped sky-high by a Queenstown real estate "microclimate" apparently immune to economic stresses.
The latest data from realestate.co.nz, released this morning, shows signs of confidence returning to the market.
Nationally the average asking price for residential properties increased 1.1% over the past year, to $862,000.
In Central Otago-Lakes, however, prices shot up 18.9%, leading to the highest average asking price on record for any area in New Zealand.
By comparison, average asking prices in the rest of Otago dropped 6.8%, to $574,800 and were down 0.8% in Southland, to $544,000.
Realestate.co.nz spokeswoman Vanessa Williams said the activity seen throughout October suggested confidence was returning to the market, though Queenstown was fast becoming an anomaly anyway.
Previously, it had been close to Auckland on average asking prices, but Queenstown had "exploded" over the past five years, whereas Auckland had comparatively retreated.
"[Queenstown] seems to be the only market in New Zealand that is sort of immune, shall we say, to a lot of the economic challenges that the rest of the country is having."
For $1.6 million, you could probably buy a "nice three-bedroom home" in Queenstown, she said.
"I mean, there are $18m homes down there.
"There’s also apartments for less than a million dollars.
"So, it is a real mix, but it really seems to be a microclimate that is immune to those sort of economic challenges that we’re seeing."
Those buying properties in Queenstown would be cashed-up and interested in array of activities, she said.
"It really does offer those who are able to purchase down there a really significant set of activities that they can enjoy right across the year."
Outside of Queenstown, the market had been largely steady, she said.
"With an increase in listings hitting the market, plus a regional all-time asking-price high like we’ve never seen before, there are early signals that a shift is beginning to take place.
"And, with asking prices remaining stable across the majority of our 19 regions, both buyers and sellers can enter the market feeling confident it will deliver a favourable result."
Gisborne and Coromandel were the standout regions contributing to the surge in new listings in October 2025, reporting a year-on-year increase of 22.8% and 20.6%, respectively. However, not all regions followed an upward trajectory. The West Coast saw the biggest decline with new listings down 16.7% from a year ago.
Ms Williams said the total number of new listings coming on to the market suggested a return to pre-Covid levels of market confidence.
"After a few years of caution, October’s strong activity is a promising sign of confidence returning to the market."
Realestate.co.nz is the official website of the New Zealand real estate industry.
Average house prices
Average asking price for residential property as at October 2025 —
Southland $544,739
Otago $574,857
National $852,563
Auckland $1.03m
Central Otago-Lakes $1.65m
Source: realestate.co.nz
