New data reveals that while houses typically deliver stronger long-term price growth than apartments, but the difference is not as large as many expect.
According to realestate.co.nz new data, over the past five-and-a-half years (May 2019 to November 2024), both houses and apartments saw similar levels of growth. Over this period, the average asking price of houses increased by 29.6% -from $650,839 to $843,208 , while apartments closely followed with a 27.1% increase – from$590,720 to $750,611.
However, looking back 17 years, the gap widened significantly, with houses seeing a 102.6% increase compared to apartments’ 82.8%. Between November 2007 and November 2024, the national average asking price for housesincreased by 102.6%, from $416,173 to $843,208. In comparison, apartments saw an 82.8% increase during the same period, rising from $410,516 to $750,611.
Vanessa Williams, spokesperson for realestate.co.nz, attributes the difference to land value: “Houses have delivered stronger long-term gains because they typically include more land, which increases in value over time. In contrast, apartments often don’t benefit as directly from land value, as the land is usually shared among all units in the complex or, in some cases like leasehold properties, owned by someone else.”
Despite the slower growth in returns, Williams notes that the apartment market could be an attractive option for first-home buyers as apartment price, for example, in Auckland was 29.3% less than for a house.
“It’s not just about the numbers—lifestyle plays a huge role in choosing between a house and an apartment. Some buyers prioritise the convenience of city living with minimal maintenance, while others value the space and flexibility of a house.”
