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 May 2020, the median house price in Otago is $505,100. This is up from $251,000 10 years earlier. That means that the median Otago property increased in value by 7.24% each year, or $25,410 on average.

The most expensive suburb in Otago is Arrowtown, which has a median house price of $1,388,350 and is located in Queenstown-Lakes district. That means that Arrowtown's median house price is 2.75x Otago's median.

The least expensive suburb in Otago is Ranfurly, which has a median house price of $253,400 and is located in Central Otago district. That means that Ranfurly's median house price is 49.83% cheaper than Otago's median.

Over the last 20 years (Jan 2000 – Mar 2020), Otematata had the fastest-growing house prices in all of Otago, at 10.91% per year. That is 27.98% faster than the median Otago house price.

The suburb that grew the slowest over that period was Balclutha, which grew at a rate of 6.25% per year. That’s 26.71% slower than the median Otago house price.

On average, over the last 27 years, Otago's median house price has been 72.61% 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 Dec 2019, Otago's median house price was 86.82% of New Zealand’s median house price. That is 19.57% 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 $833,700. While the most affordable suburb is South Dunedin, which has a median house price of $355,650.

Over the last 20 years of all Dunedin City suburbs (Jan 2000 – Mar 2020), Brockville had the fastest-growing house prices, at 9.03% per year. That is 1.54% faster than the median Otago house price.

The suburb that grew the slowest over that period was Maori Hill, which grew at a rate of 7.03% per year. That’s 20.93% slower than the median Otago house price.

Queenstown-Lakes is made up of 7 suburbs. The most expensive suburb is Arrowtown, which has a median house price of $1,388,350. While the most affordable suburb is Lake Hawea, which has a median house price of $788,650.

Over the last 20 years of all Queenstown-Lakes suburbs (Jun 2000 – Mar 2020), Arrowtown had the fastest-growing house prices, at 8.69% per year. That is 2.90% faster than the median Otago house price.

The suburb that grew the slowest over that period was Wanaka, which grew at a rate of 7.59% per year. That’s 10.03% slower than the median Otago house price.

Central Otago is made up of 10 suburbs. The most expensive suburb is Bannockburn, which has a median house price of $950,700. While the most affordable suburb is Ranfurly, which has a median house price of $253,400.

Over the last 12 months of all Central Otago suburbs (Mar 2019 – Mar 2020), Bannockburn had the fastest-growing house prices, at 10.77% per year. That is 44.98% slower than the median Otago house price over the same period.

The suburb that grew the slowest over that period was Naesby, which grew at a rate of 2.78% per year. That’s 85.81% 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 $452,300. While the most affordable suburb is Oamaru, which has a median house price of $312,300.

Over the last 12 months of all Waitaki suburbs (Mar 2019 – Mar 2020), Otematata had the fastest-growing house prices, at 10.81% per year. That is 44.74% slower than the median Otago house price over the same period.

The suburb that grew the slowest over that period was Weston, which grew at a rate of 2.41% per year. That’s 87.67% slower than the median Otago house price.

Clutha district is made up of 2 suburbs. The most expensive suburb is Balclutha, which has a median house price of $291,500. While the most affordable suburb is Milton, which has a median house price of $262,050.

Over the last 20 years of all Clutha district suburbs (Apr 2000 – Mar 2020), Milton had the fastest-growing house prices, at 7.64% per year. That is 6.57% slower than the median Otago house price.

The suburb that grew the slowest over that period was Balclutha, which grew at a rate of 6.39% per year. That’s 21.84% slower 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.