Queenstown house values rose again this quarter (Aug-Oct 2022), while values elsewhere in New Zealand continue to fall, according to Quotable Value (QV).

The souths leading tourist town which has an average house value of $1,700,421, recorded a 2.9% rise in house prices this quarter and 4.9% for the calendar year to date.

This compares favorably to nationwide urban house drops of between 1.5 - 6.8% for the quarter and 9.7% for the year to date.

QV property consultant Greg Simpson said the 2022 ski season had been one of the best on record, while visitor nights and spending had both increased compared to pre-Covid levels.

The rest of the district appeared to be operating at near normal activity levels, he said.

“We note that there is currently reduced sales volumes and tapering but still positive value growth for residential property. With inflation now becoming more entrenched, further interest rate rises are expected from the major lenders, which will continue to have a cooling effect on the housing market,” Simpson said.

Invercargill had an average house value of $498,473 in March, however has now dropped to $473,376, 1.8% recorded in this last quarter.

Local QV registered valuer Andrew Ronald said there was still much less demand now compared to late 2021 and early this year.

"This is particularly evident for entry-level housing where there are now limited investors and fewer first-home buyers looking to purchase. This is due to difficulties in obtaining suitable finance, rising interest rates, and the increasing cost of living,” he said.

QV said an average 11.7% has been wiped off regional house values in the last ten months.