Keep informed with PropertySage’s latest blog, offering landlords vital market updates, valuable insights, and expert advice to optimize rental properties and ensure a seamless, rewarding experience for tenants.
House sellers across New Zealand are adjusting their price expectations, with the national average asking price dropping to $821,750 in July. Auckland’s average asking price fell below $1 million for the first time since September 2024, signaling a potentially prolonged dip. This shift creates a more favorable environment for buyers, especially as regional prices also trend downward.
While rents have recently seen a slight adjustment due to market rebalancing, not a meltdown, upcoming potential OCR cuts could mean lower mortgage payments for you soon. I strongly recommend reviewing your mortgage now to secure better terms, ensuring your property remains competitive and attractive to quality tenants.
Recently, we’ve seen New Zealand house prices stay mostly flat. After a small increase late last year when mortgage rates dropped, prices haven’t moved much, going up by only about 0.1% each month lately.
You might wonder why the market isn’t growing faster, especially since mortgage rates have come down from over 7% to below 5%. Here are a few key reasons:
Recent data indicates that New Zealand’s rental market is currently experiencing high supply levels, offering favorable conditions for tenants. This increased availability has contributed to slightly lower average rental prices in many areas. Key reasons include properties shifting from short-term to long-term rentals and a slower sales market leading owners to rent out properties instead.
Rents are decreasing in some areas, giving tenants more choices, but landlords are finding it harder to secure good tenants. Now, 35% of landlords are considering selling their properties, and concerns about rising costs for repairs and insurance are growing. Although bank loans are becoming easier to obtain, overall confidence among landlords is declining.
The article discusses how outgoing Reserve Bank Governor Adrian Orr has been blamed for financial troubles faced by businesses and homeowners, largely due to his policies that contributed to high inflation. While some criticism is justified, it also points out that government spending and global supply chain issues played significant roles in the economic situation. As Orr departs, there are hopes for improved cooperation between the Reserve Bank and the new government, potentially leading to better economic analysis and conditions.
The housing market is looking better for buyers this year, with more listings and falling prices. In January, there were about 39,000 homes available, a 17% increase from last year, while the average asking price dropped to $842,900. This trend suggests that buyers have more options and lower prices as we enter the busiest season for real estate.
In January, property values in Aotearoa New Zealand fell by 0.1%, continuing a trend of limited movement over the past five months, with the national median value at $803,819—17.5% below peak levels from late 2021. Despite some signs of potential growth in specific areas, such as North Shore in Auckland, overall stability in property values suggests a cautious outlook, influenced by lower mortgage rates and increasing sales. However, challenges such as a soft economy and upcoming debt-to-income ratio caps may hinder a significant rebound in the market.
Trade Me Property reports an oversupply of rental properties, leading to a 36% increase in listings and a median rent decline to $630 per week. Landlords are advised to adjust rent expectations and enhance property appeal to attract tenants in this tenant-favorable market.
Tony Alexander discusses the Reserve Bank of New Zealand’s recent 0.5% cut to the Official Cash Rate, which has brought it down to 4.25%, while highlighting that the overall economic situation remains fragile with ongoing recessionary pressures and global trade challenges. Although there are signs of improvement in consumer sentiment and the real estate sector, the potential for significant reductions in mortgage rates—especially for longer terms—is limited due to persistent inflationary pressures abroad. Borrowers are advised to be cautious, as expectations for deeper interest rate cuts are fading.
Renting out your property in New Zealand can be rewarding, but it’s essential to understand the rental market and your legal obligations as a landlord. Ensure your property is well-maintained, set clear expectations for tenants, and communicate openly to foster a positive relationship. Remember, at PropertySage, we’re here to support you every step of the way in your rental journey!
CoreLogic’s Home Value Index reported a 0.5% drop in property values in September, marking the seventh consecutive month of decline and a total decrease of 4.7% since February. While values remain 16% higher than pre-COVID levels, they are nearly 18% below the post-COVID peak. In Auckland, most areas saw declines, indicating ongoing weakness in the housing market.
If you’re thinking about investing in property, you might wonder when the best time is to jump in. As a property manager in Auckland, I can tell you that while it’s hard to find the perfect moment, understanding the current market can help you make smart choices.
The average asking price for properties in Auckland has dropped below $1 million for the first time in nearly four years, reaching $986,750 in August 2024, marking five consecutive months of price declines. This shift presents new opportunities for buyers, as national prices also fell, with the average asking price at $818,250, leading analysts to suggest it could be a favorable time to purchase amidst ongoing market adjustments.
The New Zealand Government is proposing significant changes to the Residential Tenancies Act 1986, including reinstating 90-day no-cause terminations and adjusting notice periods for landlords and tenants. New pet regulations will allow landlords to require a pet bond and mandate written consent for pets, while also clarifying tenant responsibilities for pet-related damages. Additional amendments aim to improve clarity in tenancy agreements, streamline bond processes, and enhance protections for tenants facing family violence.
Tony Alexander predicts that house prices in New Zealand will rise before the end of the year, following a recent cut in the Official Cash Rate by the Reserve Bank, which is expected to continue decreasing in the coming years. However, challenges such as job insecurity, high property listings, and a weakening rental market may slow the overall recovery despite increasing buyer interest.
Rental prices in New Zealand have slightly decreased this month for the first time since 2022, with the median weekly rent dropping to $645 due to an increase in available rental properties and reduced demand. While Auckland remains the most expensive area, the South Island experienced notable price drops, particularly in Marlborough, while smaller properties have seen rising rents.
Allowing pets in rental properties can attract a wider range of tenants, encourage longer tenancies, and potentially increase rental income. To prepare, landlords should establish a clear pet policy, ensure property safety and durability, and maintain open communication with tenants regarding pet care.
The New Zealand rental market is seeing a significant increase in rental listings, up 40% in the last quarter, while rental demand has only risen by 2.5%.
As a property owner, there are many effective strategies you can use to boost the value of your real estate. This article will explore the most impactful methods to maximize the value of your property.