Invercargill Defies National Housing Slowdown with Record Price Surge
Invercargill, New Zealand's southern city known for affordability, has seen a significant surge in house prices, defying the national trend of a 1.2% decline over the past year. The average value in Invercargill is now just shy of $550,000, with an 8.2% increase.
The main driver behind this growth is the strong local economy, fueled by record meat and dairy export revenue. This has led to increased farm incomes, which in turn supports local businesses and employees, including trades workers who are now able to invest in residential property.
Local mortgage broker Mandy Jordan notes that freshly-qualified trades workers no longer need to leave Invercargill for jobs, as there are plenty of construction projects and employment opportunities available. This has created a highly competitive market, with first-home buyers actively seeking properties.
Harcourts Invercargill manager Wayne Ellis warns that the shortage of housing in Invercargill will continue to intensify competition, particularly with new infrastructure projects on the horizon, including a wind farm, salmon farm, data centre, and critical minerals and hydrogen plant. This is expected to bring an influx of 2000-3000 workers who will need housing.
Quotable Value's Lower South Island regional manager Kylie Helman expects Invercargill's house prices to eventually stabilize at a more sustainable level, but it's too early to determine if the recent flattening off in July is a seasonal trend or an ongoing phenomenon.