Property Market
5 min read
What's happening with Palmerston North house prices?
Council area of Manawatu-Wanganui
Author: Ed McKnight
Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.
Reviewed by: Laine Moger
Journalist and Property Educator with six years of experience, holds a Bachelor of Communication (Honours) from Massey University.
What's happening to Palmerston North house prices?
The average price of a Palmerston North property is $637,709 (QV, January 2026).
Palmerston North house prices are down 0.65% over the last three months (REINZ). And they are 1.21% down over the last 12 months.
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Quick Facts
- The average price of a Palmerston North property is $637,709 (QV, January 2026)
- Over the last 3 months property prices in Palmerston North have gone down 0.65%
- Palmerston North property prices increased 4.48% per year (on average) in the 20 years between February 2006 - February 2026 (REINZ)
- The average rent in Palmerston North is $540 per week (Tenancy Services, January 2026)
How are Palmerston North property prices changing?
Palmerston North house prices soared after the Covid-19 pandemic began. House prices started out 34% below the eventual peak of the market.
However, after that peak in November 2021, house prices fell 19.56% before bottoming out in July 2025.
Today, Palmerston North house prices are down 19.51% compared to their peak. That means prices have risen 0.05% since the bottom of the market.
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Where is Palmerston North in its property cycle?
At the absolute bottom of its property cycle, Palmerston North was 25.35% undervalued.
Today, property prices in Palmerston North are undervalued 4.36%.
That suggests there is a buying opportunity in Palmerston North.
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Palmerston North suburb prices
I track the value of suburbs in Palmerston North. The most expensive suburb is , which has an average house value of $. While the most affordable suburb is , which has an average house value of $.
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What is the Palmerston North rental market like?
Here's how rents are changing in Palmerston North. Over the last four years (January 2022 - January 2026) the median rent has gone up $90 a week. That's 4.66% a year (on average).
Over the last 12 months, rents have gone down. They are down 0.92% ($5 a week) year on year.
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Are properties selling above or below CV in Palmerston North?
One of the most common questions I get asked is: 'Ed, are properties selling above or below their Capital Value (CV)?'
Some call it the RV (Rateable Value) or GV (Government Value).
Why do people care? Well, if you go on TradeMe (or another website), you’ll almost always see the council’s valuation for the property. So even if the seller hasn't advertised a price, you can get a feel for what the property might sell for.
This table shows whether the average property is selling above or below CV across Manawatu-Wanganui.
The area in Manawatu-Wanganui selling the highest vs CV is Whanganui District where house prices are current selling 6% above CV.
The area in Manawatu-Wanganui selling the lowest vs CV is Ruapehu District where house prices are selling 6% below CV.
Where do house prices grow the fastest in the Palmerston North property market?
Where do house prices go up the fastest in Palmerston North?
This map lets you find out for yourself.
Each area represents a different suburb, and the colour of the area represents how quickly house prices have increased over the past 20+ years.
The redder the area ... the quicker house prices have grown in that suburb.
The suburb in Manawatu-Whanganui with the highest capital growth rates between January 2000 and March 2026 was Castlecliff, which grew at 8.2% per year. (Cotality)
The next highest growth suburbs over the same period was Foxton Beach (7.9% per year), and Shannon (7.9% per year).
Which suburbs in the Palmerston North property market have the highest yields?
Gross yields vary widely depending on which suburb you chose to investigate.
So, which suburbs in the Palmerston North property market have the highest gross rental yields?
Navigate the map to find the suburbs where houses produce the most cash for their investors.
The suburb in Manawatu-Whanganui with the highest yield is Manunui, which has an estimated gross yield of 7.7%.
That is followed by Taumarunui (6.6%), and Taihape (6.4%).
Other property markets to look into
If you found this article useful, then you might also like our analyses on the other property markets in New Zealand. You can read all about the Manawatu-Wanganui property market here.
Current Property Listings
This property market information is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But property markets change, and we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.
You might like to use us or another financial adviser.