Otago Property Market

This article breaks down all the most essential facts about the Otago property market.

The Otago property market is made up of 5 districts and 65 suburbs. These districts are Dunedin City, Central Otago, Queenstown-Lakes, Clutha and Waitaki.

As at November 2020, the median house price in Otago is $627,300. This is up from $247,000 10 years earlier. That means that the median Otago property increased in value by 9.77% each year, or $38,030 on average.

The most expensive suburb in Otago is Kelvin Heights, which has a median house price of $1,797350 and is located in Queenstown-Lakes district. That means that Arrowtown's median house price is 2.87x Otago's median.

The least expensive suburb in Otago is Palmerston, which has a median house price of $290,450 and is located in Waitaki district. That means that Palmerston's median house price is 53.69% cheaper than Otago's median.

Over the last 21 years (Jan 2000 – Dec 2020), Otematata had the fastest-growing house prices in all of Otago, at 11.15% per year. That is 20.12% faster than the median Otago house price.

The suburb that grew the slowest over that period was Balclutha, which grew at a rate of 6.80% per year. That’s 26.69% slower than the median Otago house price.

On average, over the last 28 years, Otago's median house price has been 72.85% of New Zealand’s median house price.

Assuming the long term fundamentals of either property market have not changed, Otago's median house price should trackback to this long term average.

That suggests that when Otago's median house price is below its long term average, there is a buying opportunity. When Otago's median house price is above its long term average, there are buying opportunities in other regions.

As of September 2020, Otago's median house price was 85.88% of New Zealand’s median house price. That is 17.89% above its long term ratio, which suggests there is likely buying opportunities outside of the Otago region.

Dunedin City is made up of 35 suburbs. The most expensive suburb is Maori Hill, which has a median house price of $878,250. While the most affordable suburb is South Dunedin, which has a median house price of $376,350.

Over the last 21 years of all Dunedin City suburbs (Jan 2000 – Dec 2020), Calton Hill had the fastest-growing house prices, at 9.13% per year. That is 1.63% slower than the median Otago house price.

The suburb that grew the slowest over that period was Maori Hill, which grew at a rate of 7.07% per year. That’s 23.87% slower than the median Otago house price.

Queenstown-Lakes is made up of 15 suburbs. The most expensive suburb is Kelvin Heights, which has a median house price of $1,797,350. While the most affordable suburb is Lake Hawea, which has a median house price of $791,150.

Over the last 24 months of all Queenstown-Lakes suburbs (Dec 2018 – Dec 2020), Lake Hawea had the fastest-growing house prices, at 2.83% per year. That is 97.55% slower than the median Otago house price.

The suburb that grew the slowest over that period was Jacks Point, which shrank at a rate of 3.46% per year. There, the median property value fell by $93,100 in the last 2 years.

Central Otago is made up of 10 suburbs. The most expensive suburb is Bannockburn, which as of October 2020 had a median house price of $951,450. While the most affordable suburb is Ranfurly, which had a median house price of $288,850 (Oct 2020).

Over the last 24 months of all Central Otago suburbs (Dec 2018 – Dec 2020), Naesby had the fastest-growing house prices, at 12.21% per year. That is 20.12% slower than the median Otago house price over the same period.

The suburb that grew the slowest over that period was Mount Pisa, which grew at a rate of 2.71% per year. That’s 82.25% slower than the median Otago house price.

Waitaki is made up of 11 suburbs. The most expensive suburb is Omarama, which has a median house price of $458,500. While the most affordable suburb is Palmerston, which has a median house price of $290,450.

Over the last 24 months of all Waitaki suburbs (Dec 2018 – Dec 2020), Palmerston had the fastest-growing house prices, at 13.32% per year. That is 12.88% slower than the median Otago house price over the same period.

The suburb that grew the slowest over that period was Omarama, which grew at a rate of 4.05% per year. That’s 73.50% slower than the median Otago house price.

Clutha district is made up of 5 suburbs. The most expensive suburb is Kaka Point, which as of December 2019 had a median house price of $341,350. While the most affordable suburb is Milton, which has a median house price of $303,300 (Dec 2020).

Over the last 24 months of all Clutha district suburbs (Dec 2018 – Dec 2020), Milton had the fastest-growing house prices, at 20.16% per year. That is 31.94% faster than the median Otago house price.

The suburb that grew the slowest over that period was Lawrence, which grew at a rate of 16.31% per year. That’s 6.74% faster than the median Otago house price.

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 Auckland property market, the Wellington property market and the Christchurch property market by clicking any of the links mentioned here.