Full Breakdown
Townhouse Resales in New Zealand Show Significant Losses in Early 2024
5/21/2026, 1:53:33 AM
Townhouses Selling Below Purchase Prices
In Q1 2024, many New Zealand townhouses sold for less than their purchase price. The median loss was NZ$49,500, equal to the median loss for houses, indicating a correction after the 2021-2022 buying peak.
Growing Stock and Market Share
New Zealand now has 242,000 townhouses—48,000 more than eight years ago—making up 13 % of residential stock and 12 % of listings, while houses dominate at 74 % of stock and 75 % of listings. The rise of 48,000 units represents a notable expansion of the segment.
Losses, Days on Market, and Notable Transactions
St Andrews Rd townhouses bought for NZ$2.15 m and NZ$1.99 m in 2022 sold for NZ$1.55 m and NZ$1.65 m. An East Coast Rd unit bought for NZ$2.35 m in Nov 2023 resold for NZ$1.739 m. Largest losses were Ventnor Rd Remuera (NZ$890 k), Sandringham Rd (NZ$820 k), Brilliant St (NZ$725 k), Agathis Ave (NZ$655 k) and East Coast Rd (NZ$610 k). Realestate.co.nz reports an average market time of 120 days for townhouses versus 96 days for houses.
Official Statements & Responses
Kelvin Davidson of Cotality said the townhouse market is weaker than the house market due to higher supply and softer values, but it is not collapsing. Diego Traglia noted that owners who bought at peak prices now face competition from new builds offering cash-back, low-deposit and upgraded-appliance incentives, and that buyers are more price-conscious, making presentation and negotiation crucial.
Criticism & Opposition: Seller Pressures and Competition
Traglia’s comments underscore pressure on second-hand owners: brand-new units with incentives force sellers to lower prices or risk long listings, and the abundant inventory reduces the chance of recouping original costs, especially for homes lacking larger floor plans, natural light or parking.
Impact on Owners
The median loss of NZ$49,500, together with the top five individual losses ranging from NZ$610,100 to NZ$890,000, highlights the financial impact on owners in the current townhouse market.
Conflicting Reports & Gaps
The report gives median loss data but does not break losses down by region or price tier, leaving gaps in segment-level analysis.
Verbatim Quotes
- “But they’re not totally collapsing.” — Kelvin Davidson, Chief Property Economist, Cotality
- “Performing only slightly better than the apartment sector in many areas.” — Diego Traglia, Auckland Real Estate Salesperson
- “From our experience, many of those resales are competing against brand new developments still offering incentives such as cashback, low-deposit structures, upgraded appliance packages or more flexible settlement terms. That creates additional pressure on second-hand townhouse owners trying to achieve their original purchase price.” — Diego Traglia
- “There are still buyers active in the segment, but they are far more price conscious and have a lot of choice, so presentation, positioning, and negotiation matter more than ever in this market.” — Diego Traglia
