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New Zealand's Housing Market Remains Subdued, Buyers Shift Towards Affordable Areas, Says Cotality

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New Zealand's Southland and West Coast housing markets dominate the list of the country's strongest performers, while values remain broadly flat at a national level, said Cotality in a Wednesday report.

The report said Southland and West Coast account for 21 of the top 25 suburbs where house values have risen by at least 10% over the past year, with Lorneville in Invercargill, Wallacetown in Southland District, Ngahere in Grey District, and Te Anau in Southland District all recording annual growth of more than 14%.

The national median value of a standalone house fell 0.1% over the quarter to NZ$834,199, remaining 17% below the peak, while the overall median stands at NZ$808,187, the report added.

Auckland still dominates the list of suburbs with the highest median values, including around NZ$3 million in Herne Bay, NZ$2.4 million in Saint Marys Bay, and NZ$2.4 million in Parnell. Auckland suburbs feature prominently among the country's weakest performing areas, it added.

Cotality NZ chief property economist Kelvin Davidson said buyers remained in control of pricing negotiations after weaker-than-expected sales activity across the first four to five months of the year, with elevated listings and subdued sales volumes likely to remain key features of the market in the months ahead.

"The next three to six months are likely to bring more of the same patterns we've seen at a suburb level, with affordability remaining a key driver of demand and property values generally tracking sideways at a national level," Davidson added.

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