Arrowtown is now NZ’s most expensive suburb

Arrowtown is now New Zealand’s most expensive suburb, with average asking prices surpassing $3 million, marking a significant shift in the country’s luxury property landscape.

New data from the first quarter of 2026 shows the Central Otago township has taken the top spot among the nation’s priciest postcodes, overtaking long-standing Auckland leaders and signalling growing demand for high-end lifestyle locations in the South Island.

Trade Me’s latest Property Pulse Report also highlights a broader market that remains relatively subdued. Nationally, the average asking price was $862,550 in March, down 2.5% from February and largely unchanged year-on-year, easing by just 0.3%.

While the overall market reflects a cautious “wait and see” approach, the top end is showing stronger momentum.

Auckland suburbs still feature heavily among the most expensive areas. Parnell ranks second with an average asking price of $2,640,350, followed by Westmere at $2,598,900, which enters the top three for the first time. Remuera, previously the most expensive suburb, has slipped to fourth at $2,378,500, while Ponsonby rounds out the top five at $2,300,650.

Trade Me Property Customer Director Gavin Lloyd says Arrowtown’s rise reflects a broader shift in buyer preferences.

“Arrowtown hitting the $3 million mark is a massive milestone. It’s no longer just a holiday destination, it’s fast becoming a status postcode for those looking for a mix of heritage charm and alpine luxury,” Lloyd says.

He says the data shows that while Auckland remains dominant, other regions are becoming increasingly influential at the top end of the market.

“While Auckland still dominates 15 of the top 20 most expensive spots, the South Island is making its presence felt with Arrowtown, Wānaka, Queenstown and Christchurch’s Fendalton all firmly in the multi-million-dollar club.”

Beyond the premium segment, activity across the wider market is picking up as New Zealand moves into autumn.

New listings rose 2% in March compared to February, while buyer demand remained resilient, with search activity increasing 5% month-on-month.

Lloyd says these trends point to a relatively balanced market overall. “We are seeing a fairly balanced market right now.

“Supply is up, but so is demand. It’s a great time for buyers who have been sitting on the sidelines, as they have more choice than they did a year ago, particularly in regions such as Otago and Southland where new listings have jumped by 14% and 15% respectively.”