Property Market

9 min read

How is the West Coast property market going?

Ed solo

Author: Ed McKnight

Our 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.

Share

LinkedInFacebookTwitter
Copy to clipboard

Copied

West Coast's median house price is $340,000

West Coast house prices

Loading...

As at January 2024, the median house price in West Coast is $340,000. This is up from $165,000 10 years earlier. That means that the median West Coast property increased in value by 7.50% each year, or $17,500 on average.

The most expensive suburb in West Coast is Paroa, which has a median house price of $538,400 and is located in the Grey District district. That means that Paroa's median house price is 158% of West Coast’s median.

The least expensive suburb in West Coast is Cobden, which has a median house price of $258,200 and is located in the Grey District district. That means that Cobden's median house price is 76% of West Coast’s median.

Over the last 24 months (Dec 2021 - Dec 2023), Reefton had the fastest-growing house prices in all of West Coast, at 12% per year.

The suburb that grew the slowest over that period was Blaketown, which grew at a rate of 5% per year.

NZ Property Market Update: September 2023

West Coast's house price is 4.64% below its long term average

Is West Coast over or undervalued?

Loading...

West Coast house prices look relatively cheap compared to where we'd expect them to be.

In the above graph, when the purple line is below the baseline (black line), West Coast's house values are undervalued. This suggests there is a buying opportunity in the region.

When West Coast’s house values are above the baseline, other regions have buying opportunities.

How is this calculated? Click on the accordions below to find out.

Where are the most affordable properties in West Coast?

The map below depicts which districts within the West Coast Region have the most and least affordable house prices (REINZ, January 2024).

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

The Westland District is the most expensive district within the West Coast Region, with properties reaching a median price of $395,000 in January 2024.

By comparison, the Buller District is the most affordable, with a median house price of just $285,000. That's a $110,000 difference compared to Westland District.

Where are house prices most over and undervalued within the West Coast region?

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

Westland District appears to be the least undervalued area in West Coast. House prices there are about 2.60% below where we would usually expect them to be over the long term.

Grey District, on the other hand, appears to be the most undervalued in West Coast. House prices in this district appear to be 7.96% below where we would expect them to be.

This means that we've got greater confidence that Grey District house prices will increase faster over the next 5-10 years compared to Westland District.

Which part of West Coast gets the highest population growth?

The map below illustrates the projected population growth for each district within the West Coast Region over the next 25 years (2023 - 2048).

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

Over this period, Grey district is expected to see the most growth of all the council areas within the region. -5.28% in total.

By contrast, Buller district is expected to shrink by -15.39% over the same timeframe.

Buller District suburb prices

Buller

Loading...

Buller District is made up of 4 suburbs. The most expensive suburb is Carters Beach, which has an average house value of $429,150. While the most affordable suburb is Westport, which has an average house value of $324,750.

Over the last 24 months of all the Buller District suburbs (Dec 2021 - Dec 2023), Reefton had the fastest-growing house prices at 12.48% per year.

The suburb that grew the slowest over that period was Westport, which grew at a rate of 5.77% per year.

Grey District suburb prices

Grey

Loading...

Grey District is made up of 7 suburbs. The most expensive suburb is Paroa, which has an average house value of $538,400. While the most affordable suburb is Cobden, which has an average house value of $258,200.

Over the last 24 months of all the Grey District suburbs (Dec 2021 - Dec 2023), Karoro had the fastest-growing house prices at 8.92% per year.

The suburb that grew the slowest over that period was Blaketown, which grew at a rate of 4.96% per year.

Westland District suburb prices

Westland

Loading...

Westland District is made up of 2 suburbs. The most expensive suburb is Hokitika, which has an average house value of $403,900. While the most affordable suburb is Hokitika, which has an average house value of $403,900.

Over the last 24 months of all the Westland District suburbs (Dec 2021 - Dec 2023), Hokitika had the fastest-growing house prices at 5.57% per year.

The suburb that grew the slowest over that period was Hokitika, which grew at a rate of 5.57% per year.

How are West Coast's house prices changing right now?

West Coast's capital growth rate

Loading...

The above graph shows how quickly house prices have increased or decreased over the previous 12 months. This is also known as ‘capital growth’.

So does this show how the property market is going right now?

Yes and no.

It shows how expensive properties are today compared to 12 months ago.

While this will give us a good sense of how property values have changed, it’s not the only thing to consider.

You might also look at how quickly property values are going up (or down) from month to month, the number of property sales and how quickly properties are selling.

What is the median rent in West Coast?

West Coast's median rent

Loading...

The above graph shows the median rent within a given month.

The data comes from the Ministry of Business Innovation and Employment (MBIE) and is provided through their Tenancy Services website.

Their data is based on all the rental bonds lodged by private landlords within the month.

What is the annual increase in rents in West Coast?

West Coast's annual increase in rents

Loading...

This graph shows the annual growth in median rents.

The data also comes from the Ministry of Business Innovation and Employment (MBIE).

How many listings are currently available in West Coast?

West Coast's current listings (Housing stock)

Loading...

This graph shows current property listings, with data sourced from realestate.co.nz.

It shows the number of listings that are currently available on the website per month.

You might be wondering: “How do the number of listings impact house prices?”

If many listings are available, then people will think there is lots of supply. This means that people feel like they can take their time choosing a property.

This leads to less competition and softer house prices.

On the other hand, if there aren’t many listings available, people will feel like there is a shortage of houses. This leads to FOMO (fear of missing out).

This makes people more competitive and more likely to bid up house prices.

How many properties are sold per year in West Coast?

West Coast – Number of properties sold per year

Loading...

The above graph shows the total number of properties sold over the prior 12 months. For example, if looking at the data for August 2023, the graph will show all the sales between September 2022 – August 2023.

The data comes from the REINZ Market Insights Report and The Real Estate Institute of New Zealand (REINZ) collects data directly from agents.

You might be wondering: “How does the volume of sales impact house prices?”

They don’t impact house prices on their own. But a high number of sales represents a hot property market.

That’s because there are a lot of people out there buying property.

That’s why when sales volumes are high, property prices typically increase at the same time.

When property sales are falling, typically, property prices are also soft.

Ed solo

Ed McKnight

Our 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.

Ed, our Resident Economist, is equipped with a GradDipEcon, a GradCertStratMgmt, BMus, and over five years of experience as Opes Partners' economist. His expertise in economics has led him to contribute articles to reputable publications like NZ Property Investor, Informed Investor, OneRoof, Stuff, and Business Desk. You might have also seen him share his insights on television programs such as The Project and Breakfast.

Other Regions