What does it cost to build a house in New Zealand?

If you’ve been on the hunt for the perfect home for a while, you’ve likely considered the prospect of constructing a new dwelling or purchasing a new-build property. The idea of investing a substantial sum into something that doesn’t yet exist might seem daunting, but the potential benefits can indeed be substantial.
There are numerous advantages to constructing your own home. Not only do you get the opportunity to choose a layout that suits your lifestyle, but you also acquire a property that requires no initial maintenance, is healthier and more energy-efficient, and often qualifies for additional financial aid.
You may also be pondering whether building a home is a more cost-effective alternative. In this blog, we’ll provide a comparison of the typical costs of existing houses versus new-builds to help you estimate the expense of your new-build home.

When you’re prepared to seek professional advice on new-build mortgages and the various government incentives, we offer a complimentary service that connects you with one of the country’s top mortgage advisors. These professionals are at the pinnacle of their field and are compensated by the lender you ultimately select, ensuring their services cost you nothing.

The recent surge in New Zealand’s house prices may not surprise you if you’ve been keeping up with the news. It’s a matter of concern for everyone, but particularly for first-time home buyers. The good news is that prices have recently stabilized, but the rising interest rates pose a new affordability challenge.
According to the April 2023 monthly property report from the Real Estate Institute of New Zealand (REINZ), median residential property prices across the country dipped by 10.9% to $780,000 between April 2022 and April 2023. Auckland led the median price list, even though it fell 15.0% to $995,000. However, two regions, West Coast (8.6%) and Otago (3.2%), saw year-on-year price increases.
Understanding median prices

The median sale price is the midpoint of all sales when ranked from highest to lowest. It can be distorted for a specific area if the majority of sales were either high or low priced homes. It can also differ from the median estimated value for all homes in a location. For instance, homes.co.nz published median home estimates in April 2023 for our main centres. The figure for Wellington was $957,000, yet the median sale price for the Wellington region was $797,000. This discrepancy suggests a higher percentage of sales were lower priced homes.
The median sale price still serves as a useful broad indicator for comparing regions and tracking changes over time. Of course, actual prices within any region will vary widely, depending on the type of home, its condition, and the demand for its location.

Building a new home can be an exciting venture, filled with potential benefits. However, it’s crucial to understand the financial implications and market conditions before making such a significant investment. With the right guidance and resources, you can navigate this process successfully and find the home of your dreams. Keep an eye on our blog for more insights and updates on the housing market and the process of building a new home.