In Auckland, Wellington and parts of the Bay of Plenty, the cost difference between a median three-bedroom and four-bedroom home has fallen significantly from its peak, making 'trade-up' moves relatively more affordable than they were.
If you have been thinking about moving to a bigger house or a nicer suburb, new data suggests conditions in some parts of New Zealand have shifted in favour of that move — at least from a pure price-gap perspective.
Cotality has released data examining the typical difference in price between a three-bedroom and four-bedroom home across the country. Chief property economist Kelvin Davidson said the 10 largest trade-up premiums all sat above $290,000 — but in several markets that gap has narrowed meaningfully in recent years, as RNZ reported.
In Auckland's central suburbs, the gap between a median three-bedroom and four-bedroom home has fallen from a peak of $700,874 in 2024 to $588,569 currently. Wellington has seen the difference drop from $282,195 at its 2021 peak to $241,372. Christchurch has narrowed from $270,430 to $266,317. Parts of Western Bay of Plenty and Queenstown-Lakes have also seen the premium fall by 7 to 12 percent.
"Soft patches in the property market can sometimes be a good opportunity to trade up, even though a lot of households tend to withdraw when uncertainty is elevated," Davidson said. The counterintuitive logic is that if the gap has narrowed, the equity you need to raise or the debt you need to take on to move to a larger property is less than it was at the peak — even if your own home has also fallen in value. "Buying and selling in the same market can pay off," he said.
Why many people are staying put
Despite the relatively more favourable gap, Davidson said the share of movers in the market was below normal levels. Typically, about 28 to 29 percent of transactions involve someone moving from one property to another. That figure is currently sitting at around 25 to 26 percent. "We're recording a market share of 25 percent, 26 percent for movers. Normally they're 28 percent, 29 percent. So they're there, but not as active as they normally are," he said. Concerns about job uncertainty and the possibility of taking on a higher mortgage rate at renewal are keeping many households on the sidelines. This quieter market follows a decade where house prices grew at their weakest rate in 70 years, as RNZ's analysis of historical house price data showed.
First-home buyers, by contrast, have been notably active — often targeting smaller properties. That activity is partly why larger homes in some markets have seen their values decline more than smaller ones, further compressing the trade-up gap.
Davidson also flagged new builds as a potentially attractive option at present, given the large development pipeline means townhouses and other new properties are relatively abundant compared to existing stock.
The data is a reminder that "timing the market" is not the only factor — the relative price gap between what you are selling and what you are buying matters too, and that gap has moved favourably in several major centres.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.