The QV House Price Index of house values in New Zealand experienced the largest quarterly drop in more than a decade in Q1 2022.

The national average home dropped in value by 0.6% over the three months ended March, swinging from a 2.3% increase in the quarter ended in February.

“We’re seeing quite a rapid decline in the rate of annual growth - especially compared to the early months of 2021, when the market was peaking,” QV general manager David Nagel said, adding, “We’re seeing much slower growth months and even some value contraction in early 2022.”

However, the national average property price in New Zealand was $1,046,636 (£548,000) at the end of March, which was still 18% higher than a year earlier.

QV's March data backed up a report this week from CoreLogic, which pointed towards a market downturn, with falls in Auckland reaching 1.5% in March.

“If you look at just March in isolation, there are now nine of the 16 urban areas showing a value decline, including the main centres of Auckland, Hamilton, Wellington, Christchurch and Dunedin,” Nagel said.