Southland Buyers Paying Above Asking Price On Average

Southland home buyers are paying above asking price on average, while most regions across the country are landing deals below it.

New data from realestate.co.nz covers the last 12 months and compares average asking prices with average selling prices across 19 regions. Nationally, homes sold for an average of $824,698 — $5,324, or 0.6%, below the national average asking price of $830,022. But the picture varies sharply depending on where you are.

Southland came in 1.6% above asking price on average, putting it among seven regions where selling prices outstripped asking prices. Central Otago/Lakes District recorded the biggest positive gap: an average selling price of $1,441,503 against an average asking price of $1,411,460 — $30,000, or 2.1%, above asking. The region also recorded the highest average selling price in the country.

At the other end of the scale, Coromandel had the largest shortfall, with an average selling price of $969,696 sitting $45,900 — 4.5% — below its average asking price of $1,015,592.

Vanessa Williams, general manager of customer at realestate.co.nz, said the data gives buyers a clearer picture going into negotiations.

"For many buyers, deciding what to offer can feel like a guessing game. You don't want to pay more than you need to, but you don't want to miss out on a property you love, either. This data gives buyers another piece of the puzzle, showing how asking and selling prices have compared in their region over the past year."

Williams said one of the most interesting findings was how closely asking and selling prices continue to track.

"Even in the region with the biggest gap, there was less than a 5% difference between average asking prices and average selling prices. That's a surprisingly small difference and a useful reminder that asking prices remain a credible starting point for negotiations."

Williams said the results highlight why buyers shouldn't assume offering below asking is the norm everywhere.

"While average selling prices are below asking in many parts of New Zealand, there are still regions where they're coming in higher.

"It's about doing your homework. Look at what comparable properties are selling for, understand your local market and get advice from a real estate professional."

Local mortgage broker Mandy Jordan from Mortgage Supply said the figures were no surprise.

“The biggest difference we’re seeing is between purchases below $500K and purchases over $500K.

“The under-$500K bracket is moving incredibly fast while the over-$500K segment seems to be taking a bit longer. First-time Home Buyers are still busy and committed to buying as soon as they have pre-approval in place.

“Over summer when people have time off, they often do painting or landscaping to prepare their homes for sale, so I’d expect another wave of properties in the next 6 months.

“As always knowing your numbers and being preapproved is key.

“Southland purchase prices are still affordable compared to other centres and with upcoming projects in the area it wouldn’t surprise me to see Invercargill remain busy and bucking nationwide trends.”

The full regional breakdown of average selling prices relative to asking prices over the last 12 months:

Coromandel: 4.5% below asking price (approx. $45,900)
Wairarapa: 3.4% below asking price
Central North Island: 2.8% below asking price
Auckland: 2.1% below asking price (approx. $24,000)
Bay of Plenty: 2.1% below asking price
Gisborne: 1.8% below asking price
Northland: 2.0% below asking price
Waikato: 1.4% below asking price
Marlborough: 1.3% below asking price
Hawke's Bay: 0.5% below asking price
Manawatū/Whanganui: 0.4% below asking price
Nelson & Bays: 0.2% below asking price
Central Otago/Lakes District: 2.1% above asking price (approx. $30,000; average selling price $1.442 million)
Canterbury: 1.7% above asking price
Southland: 1.6% above asking price
Wellington: 0.9% above asking price
West Coast: 1.0% above asking price (average selling price $482,000)