Property Values Surge in Albert Town and Other Popular Areas

Property values in Albert Town, located near Wānaka, have seen a remarkable increase over the past decade. According to data from Realestate.co.nz, the average asking price for properties in the area has surged by 225%, rising from $553,500 in 2015 to approximately $1.796 million in 2025. This significant growth mirrors trends in various desirable locations across New Zealand.

Other regions are also witnessing substantial price increases. For instance, properties in Hahei, situated in the Coromandel, have jumped from an average price of $623,000 to $2.005 million. Similarly, Russell in the Bay of Islands has experienced a dramatic rise, with prices climbing from $1.356 million in 2015 to $3.563 million this year.

Price Increases Across Lake Areas

The data from Realestate.co.nz highlights that lakefront properties have also experienced noteworthy price hikes. Lake Hāwea, again near Wānaka, has seen a 199% increase over the last ten years. Lake Rotoiti in the Bay of Plenty has risen by 175%, while properties near Lake Wānaka have increased by 171%.

Kelvin Davidson, the chief property economist at Cotality, remarked on the impressive nature of these figures, stating, “If you bought in Albert Town or Hahei a decade ago, you’ve basically won the property lotto.” He pointed out that while iconic destinations maintain their appeal, the recent spikes in prices at less traditional locations, particularly around lakes, indicate a shift in buyer preferences.

Investment Perspectives on Holiday Homes

Davidson noted that many individuals may fantasize about owning property in popular summer destinations but often do not act on those dreams. “The issue with holiday houses is that they don’t generally have the same level or consistency of cash flow as a standard rental,” he explained.

While some properties may perform well on platforms like Airbnb, the average holiday home purchase might not present itself as a strong investment by traditional standards. Davidson emphasized the importance of considering the non-monetary benefits of owning a holiday home, such as personal enjoyment and the ability to escape to one’s own retreat.

As the property market continues to evolve, potential buyers may need to reassess their priorities. The significant price increases in Albert Town and other regions suggest that the traditional beachside options may not be the only viable investments for those seeking both lifestyle and financial returns.