Southland Property Market

Is it worth buying a property in Southland? Explore the data and find out.

Last updated: 10/05/2022

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Ed McKnight

Economist, property investor and host of the Property Academy Podcast
Introduction

Looking to Invest or buy a property in Southland?

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

The Southland property market is made up of 3 districts and 38 suburbs. These districts are Gore, Invercargill City and Southland.

Median Southland House Price

Southland's Median House Price is $446,500

As at June 2022 the median house price in Southland is $456,500. This is up from $188,000 10 years earlier. That means that the median Southland property increased in value by 9.04% each year, or $23,355 on average.

The most expensive suburb in Southland is Rosedale, which has a median house price of $706,100 and is located in Invercargill City district. That means that Rosedale's median house price is 158.14% of Southland's median.

The least expensive suburb in Southland is Mataura, which has a median house price of $241,350 and is located in Gore district. That means that Mataura's median house price is 54.05% of Southland's median.

Over the last 2 years (Jun 2020 - Jun 2022), Mataura had the fastest-growing house prices in all of Southland, at 24.92% per year. That is 10.50% faster than the median Southland house price.

The suburb that grew the slowest over that period was Te Anau, which grew at a rate of 8.35% per year. That’s 6.08% slower than the median Southland house price.

Southland House Prices Comparison with NZ

Southland's Median House Price is 4.92% above its long term average

On average, over the last 30 and a half years, Southland's median house price has been 47.61% of New Zealand’s median house price.

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

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

As of June 2022, Southland's median house price was 52.53% of New Zealand’s median house price. That is 4.92% above its long term ratio, which suggests there is likely buying opportunities outside of the Southland region.

Council Breakdown – Over/Undervalued

Where are House Prices Most Over and Undervalued within the Southland Region?

This map shows a breakdown of how over or under-valued each council area is right now in the Southland property market. These figures are calculated exactly the same way as the graph in the above section.

Invercargill City appears to be the most over-valued. House prices there are about 6.22% above where we would usually expect them to be over the long term.

Southland district, on the other hand, appears to be slightly under-valued. House prices in this district appear to be 0.46% below where we would expect them to be.

This means that we've got greater confidence that Southland District would receive a higher rate of capital growth (house price increases) over the next 5-10 years compared to Invercargill City.

Affordability

Where Are the Most Affordable Property In the Southland?

The map below depicts which districts within the Southland Region have the most and least affordable house prices (REINZ, December 2021).

The darker the district, the more expensive the average house price for that area...

The Southland district is the most expensive district within the Southland region, with properties reaching an average price of $489,000 (December 2021).

By comparison, the Gore District is the most affordable, with an average house price of just $375,000. That's a difference of just $114,000 compared to Southland.

Population Growth

Which Part of Southland Gets The Highest Population Growth?

The map below illustrates the projected population growth for each district within the Southland Region over the next 25 years (2018 - 2043).

The darker the district, the more the population is predicted to expand in that area...

Over this period, the Southland district is expected to see the most growth of all the council areas within the region – 1.91% in total. (Yes, it's confusing that there is both a Southland District and a Southland Region).

By contrast, the Gore district is expected to shrink by 8.4% over the same timeframe.

Invercargill City Property Market

Invercargill City Property Market

Invercargill City is made up of 24 suburbs. The most expensive suburb is Rosedale, which has a median house price of $706,100. While the most affordable suburb is Bluff, which has a median house price of $322,300.

Over the last 24 months of all Invercargill City suburbs (Jun 2020 - Jun 2022), Bluff had the fastest-growing house prices, at 21.05% per year. That is 6.62% faster than the median Southland house price.

The suburb that grew the slowest over that period was Rosedale, which grew at a rate of 14.06% per year. That’s 0.37% slower than the median Southland house price.

Southland District Property Market

Southland District Property Market

Southland district is made up of 12 suburbs. The most expensive suburb is Te Anau, which has a median house price of $625,400. While the most affordable suburb is Tuatapere, which has a median house price of $255,500.

Over the last 24 months of all Southland district suburbs (Jun 2020 - Jun 2022), Wyndham had the fastest-growing house prices, at 21.41% per year. That is 6.98% faster than the median Southland house price over the same period.

The suburb that grew the slowest over that period was Te Anau, which grew at a rate of 8.35% per year. That’s 6.08% slower than the median Southland house price.

Gore Property Market

Gore Property Market

Gore is made up of 3 suburbs. The most expensive suburb is Gore, which has a median house price of $450,700. While the most affordable suburb is Mataura, which had a median house price of $241,350.

Over the last 24 months of all Gore suburbs (Jun 2020 - Jun 2022), Mataura had the fastest-growing house prices, at 24.92% per year. That is 10.50% faster than the median Southland house price.

The suburb that grew the slowest over that period was Gore, which grew at a rate of 19.16% per year. That’s 4.73% faster than the median Southland house price.

Other Property Markets

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

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Ed McKnight

Ed McKnight is the host of the Property Academy Podcast – NZ's #1 business podcast. He is an economist, having studied at the University of Auckland and the University of Waikato. He's a frequent writer for Informed Investor Magazine and has contributed to NewsHub, Stuff, OneRoof and Property Investor Magazine.