The latest QV House Price Index shows the average home value in Invercargill increased by 1.5% to $539,126 throughout the first three months of 2026.
Homes here are now worth 8.1% more on average than at the same time last year and 42.9% more than in March 2020.
Average home values in Gore and Southland are also 10.1% and 8.2% higher annually respectively following positive growth this quarter.
In neighbouring Otago, residential property values led the country in the first quarter of 2026, outperforming the national trend.
They have grown across the wider region by 2.6% on average this quarter, with Waitaki (4.4%) and Central Otago (4%) leading the way throughout the three months to the end of March.
Clutha (0.2%) recorded the smallest amount of home value growth on average this quarter, but it is still above the national average of -0.1% growth nationally.
In Dunedin, the average home value has increased by 3.7% to $659,571, which is 2.2% higher than the same time last year and 19% above its March 2020 level.
“Property values across Otago have shown some momentum throughout the first part of 2026, with growth in most districts outperforming the national trend,” QV lower South Island regional manager Kylie Helman said in a statement.
“Dunedin has seen steady demand, while home value growth in Central Otago and Waitaki has highlighted the ongoing appeal of lifestyle locations.”
Meanwhile, home values in Queenstown also increased by 1% this quarter to a new average of $1,931,981. That figure is 6.2% higher than March 2025 and still 54.7% higher than it was in March 2020.
Across the main centres, Auckland’s average home value is 9.6% higher than it was six years ago, despite modest declines of 3.8% in the past 12 months and 0.6% this quarter.
Christchurch continues to stand out, with the average home value now 55% above its March 2020 level. The city largely avoided the sharpest part of the downturn and has recorded modest growth of 3.1% over the past 12 months and 0.9% this quarter.
In contrast, Wellington’s average home value is now 0.2% less than it was at the end of March 2020. It has reduced by 5% in the past 12 months and by 0.8% this quarter.
“The higher-priced markets felt the boom and the correction more sharply,” Mr Petersen said.
“But no part of the country was untouched. Regional and lifestyle areas also saw strong gains as buyers looked for more space and flexibility during the lockdown period.”
“While values remain higher than pre-pandemic levels, those gains are significantly smaller once inflation is taken into account,” he added.
— Allied Media
