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<\/p>\n– Invercargill leads the country\u2019s housing market, with properties selling in 31 days amid scarce listings.<\/p>\n
– Listings fell from 380 in April to about 250, driving multiple offers from strong demand.<\/p>\n
– Major developments are attracting investors, while Gore benefits from shrinking listings and renewed buyer activity.<\/p>\n
The fastest housing market in New Zealand has shifted up another gear, with \u201cunbelievably low\u201d stock levels driving intense competition for homes in Southland.<\/p>\n
Real Estate Institute of New Zealand data shows Invercargill was the fastest place in the country to sell a home in the three months to August 2026, with properties taking an average of just 31 days to change hands, five days less than a year ago. <\/p>\n
Nearby Gore was close behind at 35 days, a stark contrast to the country\u2019s slowest markets, where homes took more than 100 days to sell. The national average was 60 days.<\/p>\n
Ray White Invercargill business owner James McRobie said the \u201cunbelievably low\u201d number of properties currently for sale in the city was dictating the speed of the market right now.<\/p>\n
Listing numbers were currently hovering around 250, down from about 380 in April.<\/p>\n
McRobie expects there will be an influx of new listings over the next few weeks, but not enough to return volumes to normal levels.<\/p>\n
\u201cThere\u2019s really good demand from buyers and not enough listings to service them all,\u201d he told OneRoof.<\/p>\n
McRobie said a lot of properties were getting multiple offers and there was \u201creasonably good\u201d bidding at auctions.<\/p>\n
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A modern four-bedroom home on Pegasus Place, in Seaward Bush, sold at auction for $1.23m after a short two-week campaign. Photo \/ Supplied<\/p>\n
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A block of four flats on Pomona Street, in Georgetown, drew seven offers and sold for $1.274m within days. Photo \/ Supplied<\/p>\n
His agency had also reduced the length of its auction campaigns from three to two weeks in response to buyer interest. \u201cWe are finding that those buyers do come out of the woodwork quite quickly generally in that first week.\u201d<\/p>\n
His office recently sold a four-bedroom home on Pegasus Place, in Seaward Bush, at auction for $1.23 million after just two weekends of open homes, and an entry-level three-bedroom on Tramway Road, in Strathern, for $475,000 on the back of five offers.<\/p>\n
\u201cThere\u2019s good demand for everything at the moment \u2013 from $400,000 first homes right up to $1.2m homes. We just need more listings,\u201d McRobie said.<\/p>\n
Unlike the rest of the country, Invercargill has enjoyed strong property value growth. The $520,000 median sale price in August was 4% higher than it was in July and up 12.3% annually.<\/p>\n
Discover more:<\/p>\n
– \u2018Easy hit\u2019 for holiday-home buyers: Tiny town where \u2018everyone is talking about Airbnbs\u2019<\/a><\/p>\n – Ultra-cheap home loans are gone – how much mortgage pain lies ahead?<\/a><\/p>\n – Historic Invercargill mansion relisted for sale after massive price cut<\/a><\/p>\n First-home buyers are the biggest active group in the market, but out-of-town investors are also showing interest.<\/p>\n Harcourts Invercargill agent Carl Wilson explained: \u201cWhat\u2019s happening down here is the Data Grid\u2019s AI Data Centre is drawing a lot of interest \u2013 that\u2019s a two-to-three-year build and there\u2019s an absolute shortage of properties. From an investor point of view, finding a tenant is not going to be a problem.\u201d<\/p>\n Other developments in the works include Southland Silicon Materials Ltd\u2019s silicon smelter, which is expected to employ 1400 people; Ngai Tahu Seafood Resource Ltd\u2019s open-ocean salmon farm off Rakiura\/Stewart Island, and Contact Energy\u2019s Southland Wind Farm near Gore.<\/p>\n Wilson recently sold a two-bedroom do-up on Morton Street, in Georgetown, for $331,000 ($32,000 above asking price) after receiving seven offers in 10 days.<\/p>\n A five-bedroom property at 86 Hamilton Street, in Gore, has plenty of room for all the toys. Photo \/ Supplied<\/p>\n His Rimu Street listing was snapped up by an out-of-town investor for $575,000 after generating strong interest, while a four-flat block on Pomona Street in Georgetown sold for $1.274m after seven offers were lodged, with its $1660-a-week rental income proving a major drawcard.<\/p>\n Wilson said yields in Invercargill were around 6% to 8%, but some landlords were switching tack to cash in on the city\u2019s growing short-term accommodation market. He had a client who bought a property to rent out long-term but ended up putting it on Airbnb after discovering he could triple his income.<\/p>\n In nearby Gore, Bayleys agent Julie Mitchell said the interest from local and out-of-town investors had given the market a push, noting that listings had shrunk from about 120 to about 60. \u201cIt\u2019s really busy. [The return of] investors has definitely put some pressure back on the market,\u201d she told OneRoof.<\/p>\n \u201cWe are just finding the town is alive and buzzing and there\u2019s been a really good turnout at open homes.\u201d<\/p>\n Mitchell said the prices in her patch were also a lot more appealing than prices in some of the major North Island centres. Entry-level for Gore was around $500,000, mid-range was between $650,000 and $700,000, and the very high end was just over $1m.<\/p>\n![\"Some](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/09\/bf54d079b934cf74b5bd816ad6338047.jpg\")
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