New Zealand Property Market Update: What You Need to Know
The New Zealand property market is currently experiencing softer conditions in 2025. National values have seen a -0.6% drop this year, bringing the nationwide median down to $809,113. This is -17.2% below the January 2022 peak and the lowest level since August 2023. This trend is largely due to ongoing economic weakness, rising unemployment, and cautious buyer sentiment. While the post-COVID boom downturn has largely stabilized, strong, steady growth hasn’t materialized yet. Sales volumes are beginning to normalize, with expectations for further increases in 2026 as lower mortgage rates begin to have a lagged effect. Housing affordability is also looking more favorable, and unemployment is projected to ease next year, potentially leading to a modest rise in property values in 2026 – though a new boom isn’t anticipated due to debt-to-income rules and increased housing supply.
For Investors
This current market can be seen as an opportune time for those looking to expand their portfolios or make strategic purchases. While conditions are soft, indicating caution, this often translates to a buyer’s market. Many main centers, like Auckland, show property values around -20% to -25% below their previous peaks, offering potential for future gains.
We’re observing continued activity from mortgaged multiple property owners, suggesting that many “Mum and Dad” investors are leveraging lower mortgage rates and potentially reducing the need for rental top-ups. The current market means less aggressive bidding on house prices throughout the rest of 2025, which can lead to better acquisition terms. Consider that while values might only modestly rise in 2026, getting in during a slower period can be a sound long-term strategy.
For First-Home Buyers
Good news for you! The current property market is generally favorable for buyers, especially first-home buyers. With national values dropping by -0.6% so far in 2025, and some areas like Auckland experiencing falls, affordability is improving. In fact, the national median value is the lowest it’s been since August 2023, and roughly 17.2% down from the 2022 peak.
Lower mortgage rates are making homeownership more accessible, and you’re not likely to face aggressive bidding wars for the remainder of 2025. This allows more time to find the right property at a better price. While market conditions are cautious now, experts predict housing affordability will become even more comfortable, and property values might start to show a modest rise in 2026. This period of softness could be an ideal window to enter the market.
Source from cotality.com: by Kelvin Davidson
Additional commentary from him can be found at https://www.cotality.com/nz/insights/articles/a-cold-winter-for-property-values?utm_campaign=15800908-NZ%20-%20Home%20Value%20Index&utm_source=email
The opinions and research contained in this article are provided for information purposes only, are intended to be general in nature, and do not take into account your financial situation or goals.
