Similar Price Growth
Although houses prices typically rise more than apartments over the long-term, the gap is not as wide as many people expect.
Friday, January 10th 2025, 6:00AM
by Sally Lindsay
Although houses prices typically rise more than apartments over the long-term, the gap is not as wide as many people expect.
On average, Kiwis move every five and-a-half years. During that period between May 2019 and November 2024, both houses and apartments had similar levels of growth, new data from realestate.co.nz reveals.
Over this time, the average asking price of houses increased by 29.6%, from $650,839 to $843,208. Apartments had a rise of 27.1% from $590,720 to $750,611.
Looking back 17 years, between November 2007 and November 2024, the national average asking price for houses increased by 102.6%, from $416,173 to $843,208.
In comparison, apartments had an 82.8% increase during the same period, rising from $410,516 to $750,611.
“Houses have delivered stronger long-term gains because they typically include more land, which increases in value over time."
Realestate.co.nz spokeswoman Vanessa Williams says the difference is in land values. “Houses have delivered stronger long-term gains because they typically include more land, which increases in value over time."
In contrast, Williams says apartments often don’t benefit as directly from land value, as it is shared among all units in the complex or, in some cases such as leasehold properties, owned by someone else.”
The average asking price for an Auckland apartment in November was $750,596 – 25.3% less than the average for a house in the region which had an average asking price of $1,062,295.
| « RBNZ: house prices may rise 7% a year in next two years | Don’t bet on house prices rising faster than incomes » |
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