Energy, Confidence, and Record Prices in Southland.
Southland’s property market is showing real momentum this late spring. Median prices hit an all-time high of $525,000 in September, up 7.8% year on year, marking the highest ever for the region. First home buyers are leading the charge in a tight market, while investor activity eased, with many waiting to see how rates settle. With stock limited and demand strong, local salespeople are seeing energy return to open homes and inquiries, setting the tone for an active spring and summer.
Sales momentum is building. During September, 141 homes were sold across Southland, 98 of them in Invercargill. Days to sell have shortened slightly, keeping the market agile and energetic. Across the country, sales rose 3.1% year on year, with New Zealand excluding Auckland up 7.5%. Auction activity remained steady, with our team achieving a 100% success rate after selling both properties offered under the hammer this month. Well-presented properties continued to draw strong interest across the market.
The Reserve Bank cut the Official Cash Rate by 50 basis points to 2.5% this month. This front loaded easing aims to boost the economy. While immediate effects on house prices may be subtle, lower mortgage rates are giving buyers extra breathing room. Experts anticipate a gradual lift in property values as the economy strengthens in 2026, with debt-to-income rules keeping growth measured.
Locally, attention is on politics and development. Invercargill has a new Mayor, Tom Campbell, whose leadership adds fresh direction for the city. Government updates, including changes to earthquake prone building regulations, are paving the way for safer, smarter construction, boosting confidence for residents and investors.
Construction has begun on The Grace Street Project, a vibrant community hub featuring workshops, tech and educational spaces, coworking areas, and social lounges. Rooted in the Māori philosophy of Hauora, the project aims to strengthen community connection, support local wellbeing, and contribute to economic growth, making South Invercargill an even more appealing place to live and invest. Stage One is expected by April 2026, with full completion by October 2026.
With winter behind us, now is an ideal time to focus on warmer, healthier homes. Awarua Synergy, in partnership with Te Whatu Ora and the Southland Warm Homes Trust, is delivering the Healthy Homes Initiative locally, helping families access support for insulation, heating, curtains, and more. Spring upgrades are a good opportunity to see if you or your whānau qualify and receive expert guidance.
The rental market remains active, with residential rents averaging around $500 per week. Well presented homes continue to attract strong interest. Landlords should note recent regulatory updates, including minor amendments to the Healthy Homes Standards from 25 September 2025 and upcoming methamphetamine contamination regulations expected mid-2026, clarifying contamination levels, decontamination, and testing responsibilities.
Longer days and warmer evenings are bringing properties to life. Sellers are encouraged to declutter, brighten, and stage for lifestyle over space. Buyers should be ready to act quickly, as desirable properties are moving fast. With polished homes and our team in your corner, now is the time to step into the market.
At Professionals Invercargill, our award winning team knows the region inside out. Whether you are buying, selling, or seeking trusted property management, we are here to provide expert guidance and support every step of the way.
Visit: www.professionals.co.nz/Invercargill today.