Invercargill bucks national housing trend as values hit new peak

New Zealand’s strongest-performing housing market right now isn’t Auckland, Wellington or Christchurch – it’s Invercargill.

While home value growth remains largely subdued nationally, the southern city continues to quietly outperform every other main centre, with average home values rising 3% throughout the April quarter and 9.5% annually.

Compare that to 0.2% growth nationally this quarter and a 0.2% reduction annually, according to the latest QV House Price Index.

At $548,747, Invercargill’s average home value is now sitting at peak levels – making it the only city to have fully regained the ground lost following the post-Covid market downturn.

That is in stark contrast to larger cities such as Auckland (-22.1%) and Wellington (-27.4%), where property values remain well below their previous highs.

QV lower South Island regional manager Kylie Helman said the local property market was benefiting from a combination of relative affordability, employment stability, and growing economic confidence.

“Southland has a relatively strong real-economy employment base compared to many other parts of the country, particularly through the agricultural and industrial sectors,” she said.

“Housing also remains comparatively affordable by New Zealand standards, which is helping attract both first-home buyers and interest from investors seeking better value and stronger returns.”

QV’s latest figures show the wider Southland region has also recorded a positive start to 2026, with the average home value increasing by 2.5% to $545,033 in the April quarter.

Mrs Helman said several major projects and proposed developments across the region were also helping to lift confidence.

“There’s a growing sense locally that Southland is entering another period of long-term economic diversification and investment, with a number of large-scale industrial and infrastructure projects either underway or being discussed,” she said.

“That’s contributing to improving employment prospects and helping support confidence more broadly across the local property market.”

“While broader economic uncertainty and cost-of-living pressures are still factors, the local market has remained resilient overall and conditions continue to feel reasonably balanced on the ground,” she concluded.

Check out the QV House Price Index or search here to discover the latest value of your home.