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Otago narrows property price gap with Auckland to decade low
Property Pulse Report - October 2026
By Gavin Lloyd 11 November 2026New Zealand’s property market saw momentum build in October, headlined by Otago closing the price gap on Auckland to a decade-low $35,000, the closest any South Island region has come to challenging Tāmaki Makaurau’s crown.
According to Trade Me Property’s latest insights, asking prices lifted month-on-month across nearly every region.
At a glance
The national average asking price rose 2.7 per cent month-on-month to $857,750, with nearly every region recording an increase. Marlborough (+11%), Bay of Plenty (+9%), Nelson/Tasman (+9%), Gisborne (+9%), and Northland (+7%) led the gains. Southland was the sole region to ease over the month, down 5 per cent from September.
Year-on-year, national asking prices sat 2.9 per cent below October 2025. Trade Me Property Customer Director Gavin Lloyd notes that annual comparisons require context, as an unusually strong October last year has overstated the annual decline.
“What we’re seeing is a market that has settled at a level where more Kiwi can take part,” says Lloyd. “Prices rose in 14 of 15 regions between September and October, signaling that buyers and sellers are re-engaging as the weather warms up.
“We also saw seller intentions to list ahead of the General Election materialise, driving a near 15 per cent month-on-month surge in new properties coming to market.”
Otago closes within $35,000 of Auckland as South Island shows strength
Canterbury was the standout performer in October, reaching a record-high average asking price of $748,050, up 1.2 per cent year-on-year and more than 2 per cent month-on-month.
Otago posted the country’s strongest annual growth, up 7.6 per cent to $972,900. This brings the asking price gap between Auckland and Otago to just $35,550, the narrowest margin between any South Island region and Tāmaki Makaurau in 10 years.
Auckland crossed the seven-figure threshold for the first time since May, rising to $1,008,450, though it remained 6.7 per cent lower than last October. Marlborough (+3.7%), the West Coast (+4.3%), and Manawatū/Whanganui (+2.3%) also recorded annual gains, while Hawke’s Bay (-10.1%), Northland (-6.5%), and Gisborne (-6.2%) sat below year-ago levels.
“Canterbury set a new price record this month, but the real story is Otago closing in on Auckland,” says Lloyd.
“Ten years ago, the gap between Auckland and Otago was substantial. Today, it’s down to just over $35,000, the tightest margin we’ve recorded in a decade. Since 2021, the South Island has steadily eroded the North Island's traditional price premium, driven by sustained demand in lifestyle and growth hubs like Queenstown-Lakes, Wānaka, and Christchurch. Auckland buyers are finding more value locally, but down south, the market is running on sustained momentum.”
A Window for first home buyers
With prices roughly 13 per cent below their early 2022 peak, and an influx in new listings, October offered first home buyers expanded value and choice.
Nationally, the average asking price for a one- or two-bedroom home reached $595,400. In Christchurch City, one- and two-bedroom properties averaged $563,200.
“If you’re trying to secure your first home, this is the most workable market in years,” says Lloyd. “First home buyers have spent years chasing a market that kept moving away from them. Right now, it has paused long enough for them to catch up, and the influx of listings gives them genuine choice.”
Apartments perform strongly
Apartment prices in the two largest urban centres climbed sharply year-on-year: Wellington City jumped more than 15 per cent to $555,850, while Auckland City rose 12 per cent to $683,950.
“Apartments in our two largest city centres are having a moment,” says Lloyd. “Smaller, well-connected, central homes are firmly back in demand.”
| Region | Property Price Index | YoY % change | |||
|---|---|---|---|---|---|
| Auckland | Auckland | $1,008,450 | $1,008,450 | -6.7% | -6.7% |
| Bay of Plenty | Bay of Plenty | $945,200 | $945,200 | -0.5% | -0.5% |
| Canterbury | Canterbury | $748,050 | $748,050 | 1.2% | 1.2% |
| Gisborne | Gisborne | $690,050 | $690,050 | -6.2% | -6.2% |
| Hawke's Bay | Hawke's Bay | $762,400 | $762,400 | -10.1% | -10.1% |
| Manawatū/Whanganui | Manawatū/Whanganui | $596,450 | $596,450 | 2.3% | 2.3% |
| Marlborough | Marlborough | $840,050 | $840,050 | 3.7% | 3.7% |
| Nelson/Tasman | Nelson/Tasman | $834,100 | $834,100 | -3.2% | -3.2% |
| Northland | Northland | $781,400 | $781,400 | -6.5% | -6.5% |
| Otago | Otago | $972,900 | $972,900 | 7.6% | 7.6% |
| Southland | Southland | $529,300 | $529,300 | 1.1% | 1.1% |
| Taranaki | Taranaki | $662,100 | $662,100 | -1.1% | -1.1% |
| Waikato | Waikato | $856,200 | $856,200 | -1.0% | -1.0% |
| Wellington | Wellington | $792,950 | $792,950 | -0.4% | -0.4% |
| West Coast | West Coast | $496,000 | $496,000 | 4.3% | 4.3% |
Explore Past Property Market Reports
How much is the election influencing buyers and sellers? August 2026
- Deep South drives property market, July 2026
- House prices fall, alongside the temperatures, June 2026
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