Small pockets of growth have lifted residential property values across the Bay of Plenty this quarter, even as the national market remains largely subdued.

Latest figures from QV show the average home value across the wider region increased by 0.9% over the three months to the end of April, reaching $903,962. Gisborne led regional gains with a 3% rise, followed by Rotorua at 1.8% and Western Bay of Plenty at 1.4%.

Tauranga also recorded steady growth, with average values rising 1% to $1,045,217 for the quarter – now sitting 3% higher than at the same time last year.

This contrasts sharply with the national picture, where values lifted by just 0.2% for the quarter and remain down 0.2% annually.

QV registered valuer Damian Hall said the autumn period had delivered encouraging signs for the region, despite ongoing uncertainty.

“While the market has stabilised overall, some areas are performing better than others,” he said.

“Mount Maunganui remains tightly held, while Pāpāmoa continues to be popular with younger families and those approaching or in retirement.

“Good quality properties are generally selling well, particularly at the more affordable end of the market, while more average stock is taking longer to move and, in some cases, selling at a discount.”

However, Hall said a number of economic headwinds continued to weigh on the market.

“While fuel prices have eased slightly in recent months, the full impact on supply chains and the wider economy may still be to come,” he said.

“At the same time, the high cost of living continues to put pressure on households, and the upcoming general election is likely to keep some buyers cautious.”

Despite these pressures, Hall said the modest growth seen so far this year highlighted a degree of resilience in the local market heading into the cooler months.

Nationally, the QV House Price Index shows the average home value has reached $912,406, up just 0.2% over the quarter. Values are now only 0.3% higher than at the start of the year and 0.2% lower than a year ago.

New Zealand's housing market is in a holding pattern, QV reports. Photo / 123rf

QV spokesperson Simon Petersen said the figures reflected a cautious and steady market.

“The housing market is essentially in a holding pattern at the moment, with no real sense of urgency from either buyers or sellers, just an abundance of caution,” he said.

“People are having to take a more measured approach given the circumstances. Interest rates are always a key consideration, and there’s also restraint due to cost of living pressures, geopolitical uncertainty, and a general election looming.”

Petersen said buyers were likely to continue taking their time, with little to suggest a sharp shift in conditions.

“With very little to indicate that home value growth will suddenly take off any time soon, it’s likely that most buyers will continue to shop around and wait for the right opportunity, especially while listings remain plentiful,” he said.

Across the main centres, average home values fell slightly in Auckland and Wellington this quarter, while Christchurch recorded a 0.9% increase and is the only major city to sit above values from a year ago.

The South Island continues to outperform the North Island overall, with most centres recording modest gains.

Petersen said while some regions have defied the broader trend, particularly across parts of the South Island, seasonal factors were likely to dampen activity in the months ahead.

“We’re heading into late autumn now, when activity typically slows, and that’s likely to keep levels of growth relatively subdued at best.”

Looking ahead, he said much would depend on interest rates and wider economic conditions, but the most likely short-term outlook remained a steady, balanced market.