Feature article

Otago regional property market insights

A snapshot of Otago’s property market.

Last updated: 21 January 2025 | 3 min read

Otago’s regional property market at a glance - residential properties for sale

According to the latest Trade Me Property data, the average cost of buying a home in Otago in December 2024 was $878,400. This was a slight increase of 0.4% on the month before, and up 4.7% from December 2023, when the average Otago property price was $839,350.

Month-on-month, there was an 11.8% decrease in the number of Otago properties available for sale in December 2024, with 2,167 properties available on our site. Compared to the same period last year, the number of properties available in the Otago region in December 2024 was up a massive 28.2%, providing heaps more options for would-be buyers in this area.

Otago’s regional property market at a glance - residential properties for rent

Month-on-month, the average cost of renting a house in the Otago region was up 4.2% in December compared to November, and up 11.6% year-on-year. The average price of renting a property in the Otago Region in December was $625, compared to $560 the year before.

December 2024 saw a considerable fall in the number of Otago properties for rent on Trade Me Property, following substantial increases in the second half of last year. In December 2024, there were 842 Otago rental properties on Trade Me Property, compared to 1,043 in November.

Insights from an Otago property market expert

To get a closer look at what has been happening on the ground in Otago's real estate market, we spoke to Jason Hynes, Managing Director at LJ Hooker Dunedin. We asked him about the trends he's seen in the last months of 2024, and so far in 2025, as well as what he predicts for the rest of the year. Here's what Jason told us:

"Last year illustrated a stabilisation with Dunedin property prices. After the highs of 2020/21 and the lows of 2022/23, this has been a welcome development in our marketplace. Prices have held firm and we’re seeing a fairly well-balanced marketplace, with competition evident for desirable homes and the increase in stock levels meaning a good level of choice for buyers.

Further declines in interest rates are expected into 2025, with another OCR cut being anticipated in February, and these favourable conditions, in conjunction with certain changes to legislation coming into effect for property investors, means prices are anticipated to start appreciating before the end of 2025."

Otago is proudly home to the world's steepest street!

Current buyer and seller behaviour in Otago/Ōtākou

Among people surveyed in our September 2024 Property Pulse survey* who were seeking to buy a home in the Otago region:

1.7% were currently in the process of buying a home.
8.1% were just thinking about buying a property.
7.1% were looking to buy a property in the next year.
6.6% were looking to buy a property in the next 1-2 years.

Of the respondents who’d ideally buy a property in the Otago region, 55% agree that now is a good time to buy a home in Otago. Would-be buyers in the Otago region say they would be most willing to compromise on the size of the section/land in order to stay within their buying budget, compared to a range of five other options including size of garden, location and property condition.

Interested in how quickly properties in the Otago region change hands? Of the respondents looking to sell a home in the Otago region:

5.6% had owned their current home for more than five years.
9.6% had owned their current home for 3-5 years.
2.8% had owned their current home for 1-2 years.
5.6% had owned their current home for 6-12 months.
11.8% had lived in their current home for fewer than 6 months.

Of respondents looking to sell a home in the Otago region:

7.3% were currently in the process of selling a property.
6.5% were just thinking about selling a property.
5.9% were looking to sell a property in the next year.
5.5% were looking to sell a property in the next 1-2 years.

Could you get used to having these views on your doorstep?

Why live in Otago/Ōtākou?

According to the most recent census in 2023, 254,600 people live in the Otago Region, which has a population density of 8.2 people per km2.

The 32,000 km2 Otago region is comprised of several districts including:

A couple of things probably immediately come to mind when you think about these areas.

Firstly, the sheer beauty of the Queenstown-Lakes and Wānaka areas, with its amazing skiing/snowboarding fields, vineyards and tramping opportunities. It’s a place that attracts people from around the world, and a location that few would begrudge living in.

The Otago region is also synonymous with Otago University/Ōtākou Whakaihu Waka, one of Aotearoa’s most prominent teaching and research universities, and a major employer in the area. Other major employers in the Otago region include the construction industry, which accounted for 12% of total employment in the region in 2023, according to Infometrics. Healthcare and social assistance represented 10.8% and retail trade was the third largest sector employer at 9.7%, according to Infometrics.

*Data from Trade Me Property Pulse Survey 2024. 1,572 total responses, 127 responses from the Otago Region.

Author

Al Hall

Al Hall is a seasoned writer and researcher with a sharp eye for market trends and a knack for turning complex data into practical advice. Contributing to both Trade Me Property and Trade Me Jobs, Al covers everything from the shifting landscape of the housing market to what’s hot (and not) in the world of work. With a background in communications and a passion for helping Kiwis make informed decisions, his articles offer real-world insights to support your next big move — whether that’s a new job or a new home.