Figures from Cotality show the number of first home buyers made up 19% of all the district’s property purchases last year – an 18 year high.
This is despite the country’s wealthiest town hitting a record median of $1.7 million, up about 20% on 2024.
While other parts of the country saw flatter growth or even dips in 2025, Queenstown-Lakes values have continued to rise significantly and show no sign of slowing either, as the pace of value growth over the past three months exceeded 0.4%.
Property prices rose sharply in 2021 when interest rates were about 2.5%, but unlike the rest of the country they have only fallen 4.4% from their peak, Cotality research shows. In the country’s main centres, Auckland and Wellington, prices have dropped 23.4% and 25.4% respectively.
Queenstown also had a median gain of $480,000 when people sold their property last year. That was the highest nationwide, even if it was down on its peak of $570000 in 2022. The median loss was $104,000.
Queenstown-based independent economist Benje Patterson says the market is robust, largely due to its strong lifestyle appeal that continues to attract buyers from across Australasia.
He says the district has confirmed to the rest of New Zealand it is different – it is not actually part of the country from an economic driver perspective.
He says it would have to be a significant event such as the Global Financial Crisis in 2008 to burst the Queenstown housing bubble.
While there are thousands of people on waitlists for affordable housing schemes, real estate agents say buying a property for under $1 million is still possible, as optimism rises in the wake of falling interest rates.
Interest is mainly in building further away from central Queenstown, new developments and occasional properties coming onto the market that need renovation.
Record levels of listings continue
Meanwhile, Cotality chief property economist Kelvin Davidson says last year proved to be one of conflicting forces’, with multiple factors pulling in opposite directions to leave housing values broadly flat.
“December’s result – a 0.2% fall - leaves the national median only slightly changed from 12 months ago as the upward momentum of lower rates was offset by an elevated level of listings on the market and the weak economy.
Houses fell by 0.7%, but townhouses were down by 1.8% and the much smaller apartment segment by 4.2%.
However, early indicators suggest 2026 may bring a turnaround, driven by lower mortgage rates and a recovering economy.
The national median now sits at $808,430, which is 17.6% below the early 2022 peak.
Record levels of properties for sale across the country continue despite the housing market usually taking a break over the peak summer holiday period.
Trade Me Property had 41,000 listings and realestate.co.nz more than 30,000 at the end of last year.
It was the first time in any December month in 10 years that realestate.co.nz’s listings passed 30,000, while every month of last year, the real estate portal’s listings exceeded this number.
Davidson says the sluggishness of the labour market is the largest macro headwind. “Looking at the bigger picture, any lift in the unemployment rate will have an indirect effect on households’ confidence.”
He also pointed to growth in the stock of dwellings relative to population in recent years, which further moderated property values and helped affordability.
“The Government’s recent proposal to make major changes to resource management rules – if they get to legislation and stick through the political cycle – will only tend to reinforce these encouraging supply shifts in the housing market.”
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