New Zealand’s waterfront residential market in 60 seconds

Biggest trends

Wider residential market starting its recovery

Independent forecasters are typically predicting house prices will rise over the next two years. Early signs of recovery are shown through improving sales volumes, although prices remain flat. In the short term, price growth has been held back by the large supply of homes currently on the market for sale in most regions.

Interest rates the one to watch

Lower interest rates are boosting confidence in the market and are likely to be the most important driver of the market in the short-term. At a bigger picture level, risks around tariffs and global trade have added uncertainty to the market.

Waterfront prices moving ahead of the market

While prices remain flat in the mainstream market, both the average sale price and price premium for waterfront properties have increased compared with 12 months prior. This may indicate the waterfront market is recovering faster than the mainstream market.

Interesting facts

Whitianga lifts Waikato into the top tier Auckland, Bay of Plenty, and Otago have traditionally led the way in waterfront home values. This year, Waikato has broken into the top three, driven by strong sales in Whitianga that have lifted the region’s average waterfront sale price above Otago.

Lakeside leads, but not all water is equal

Across New Zealand, lakeside properties carry the highest average waterfront price premium, followed by coastal. Purchasers in some regions have become increasingly mindful of engineering risks, such as geotechnical issues or climate risk, which may dampen prices.

Waterfront returns outpace the market

Over the past decade, data for repeat sales of waterfront properties shows they have typically outperformed the mainstream market from a capital gain perspective. This reflects the enduring appeal and long-term value buyers place on waterfront living, driven by scarcity, lifestyle factors, and investment potential.