Unit market prices jump sky high

Atom Go Tian
Senior Data Analyst
Ray White Group

New Zealand’s luxury unit market continues to thrive, with prices and demand showing remarkable resilience nationwide. Luxury units, defined as properties in the 95th percentile of all units sold, now command price tags of $1.3 million and above. This represents a 2.7 per cent increase from the previous year and a 9 per cent rise over the past five years.

While median unit prices have steadily declined since their pandemic peak in 2021, luxury unit prices in New Zealand have begun to recover over the past year. In contrast, the median unit price currently stands at approximately $628,000 – less than half the value of their high-end counterparts.

Among New Zealand’s 16 regions, scenic Otago leads the luxury unit market with prices at $1.75 million. Auckland follows at $1.62 million, with Bay of Plenty close behind at $1.55 million.

Tasman, ranking fourth, stands out with the highest growth rates: 44 per cent over one year and 70 per cent over five years. Given Bay of Plenty’s slowing annual growth and Auckland’s modest 2.9 per cent five-year increase, Tasman appears poised to climb the rankings.

Fifth-placed Hawke’s Bay also shows promise, with a 12.4 per cent one-year growth and an impressive 64 per cent five-year growth. Its current luxury unit price of $1.3 million suggests significant potential for further appreciation.

The list of New Zealand’s top 10 most expensive suburbs for luxury units is predominantly Auckland-centric, with six out of ten locations. Within Auckland, Ōrākei Ward stands out with three spots: St Heliers, Remuera, and Newmarket. Otago and Wellington claim two spots each. Otago is represented by the “adventure capitals” Queenstown and Wanaka, ranking third and fifth respectively. Wellington takes the final two spots with Oriental Bay at ninth and Te Aro at tenth.

St Heliers leads as the most expensive suburb, with luxury unit prices at $8.6 million and above. Remuera and Queenstown follow at $5.5 million and $5.2 million, respectively. Luxury units in the remaining top 10 suburbs range from $3.45 million to $3.97 million.