Tauranga has emerged as one of New Zealand’s strongest housing markets, defying a winter downturn that has seen home values fall across most of the country.

The latest QV House Price Index shows Tauranga was the only main centre in the North Island to record growth during the three months to the end of July, with average home values rising 0.7% to $1,052,045.

The increase comes as residential property values nationally declined 1.5% over the same period, with Auckland down 2.2% and Wellington falling 3.2%.

QV national spokesperson Simon Petersen said Tauranga had quietly outperformed much of the North Island throughout 2026.

“Tauranga has been one of the North Island’s most consistent performers this year, proving that buyers are still willing to compete where the fundamentals stack up,” he said.

The city’s average home value is now 1.8% higher than at the start of the year and 2% above where it was 12 months ago.

Rotorua also proved resilient, avoiding the declines seen elsewhere in the region. Average home values there remained unchanged during the quarter at $683,685.

However, the broader Bay of Plenty market was not immune to the winter slowdown, with home values declining across the region outside Tauranga and Rotorua.

The results come as QV reported a further cooling of New Zealand’s housing market, with buyers becoming increasingly cautious amid rising borrowing costs, economic uncertainty and an approaching general election.

The average New Zealand home is now worth $898,799, down 1.3% since the start of the year and 1.2% lower than July last year.

Petersen said Tauranga’s performance highlighted the uneven nature of the current housing market.

“These markets are benefiting from their own mix of affordability, employment and supply-and-demand conditions,” he said.

“It’s another reminder that there is no one-speed housing market in New Zealand right now, and conditions are not playing out evenly everywhere.”

Despite pockets of resilience, Petersen said winter had deepened the chill across the national market and reduced what momentum had built earlier in the year.

“There is still activity, particularly from first-home buyers, and well-presented, realistically priced homes are still selling. But we’re seeing very little urgency now,” he said.

“With the general election looming late this year, many prospective buyers appear content to sit on the sidelines and wait for greater certainty.”

QV expects buyers to remain cautious and the market to continue moving at different speeds across the country in the months ahead.