Cautious Confidence Returns To The Property Market

Scoop

7 hours ago

Press Release – REINZ
The Real Estate Institute of New Zealand (REINZ) has released figures for May, revealing a moderately more active market as the country heads into the winter season. While the number of sales has increased compared to the same period last year, this growth has been accompanied by a decline in the national median price and a slowdown in the number of new listings coming to the market.
New Zealand's median price has seen a year-on-year decline of 0.9%, settling at $763,000. When considering New Zealand, excluding Auckland, the median price remained stable over the year at $689,000. Conversely, Auckland experienced a year-on-year decline of 3.5%, resulting in its median price reaching $975,000.
Eight out of the sixteen regions have reported an increase in median prices compared to May last year, with Southland leading with a notable 10.0% increase, rising from $450,000 to $495,000. The most significant year-on-year decline in median price was observed in Manawatu-Whanganui, which decreased by 5.4%, from $560,000 to $530,000.
The stability in interest rates has encouraged more buyers to enter the market, though levels of confidence vary by region. While some areas are experiencing consistent conditions, certain cities are still navigating changes in affordability and demand trends.
In May 2025, the number of properties sold in New Zealand rose by 8.9% compared to the same month last year, increasing from 6,579 to 7,166 sales. When excluding Auckland, sales increased by 11.3%, from 4,593 to 5,114. Regionally, Northland recorded the highest year-on-year increase, rising 33.3% from 171 to 228 sales. Other regions with notable sales increases included Tasman (+29.7%), Marlborough (+23.1%), and Manawatu-Whanganui (+18.7%).
This May, New Zealand experienced a 2.9% increase in listings compared to the year prior, totalling 9,489 listings. However, when excluding Auckland, there was a slight decline of 0.9% in listings, totalling 5,835. The inventory levels in New Zealand continue to rise, increasing by 5.6% year-on-year to 34,415 properties available for sale.
Nationally, 875 auction sales were reported, representing 12.2% of all sales. For New Zealand, excluding Auckland, there were 434 auction sales, accounting for 8.5% of the total sales. Additionally, the median number of days to sell properties in New Zealand has increased, rising by three days to 47, while in New Zealand, excluding Auckland, it rose by four days to 47.
The increase in the median days to sell reflects a market that, while more active in terms of transactions, is also characterised by greater buyer caution. Purchasers are taking longer to commit, which local agents suggest could be due to a lack of buyer urgency and the fact that buyers have time to find a property that best suits them.
The House Price Index (HPI) for New Zealand is currently at 3,601, showing a year-on-year increase of 0.1% and a decrease of 0.6% compared to April 2025. Over the past five years, the average annual growth rate of New Zealand's HPI has been 4.2%. Southland remains the highest-ranked region for HPI movement, taking the top place for 11 consecutive months.
Fact sheet
National Highlights for May
The total number of properties sold in New Zealand increased by 8.9% year-on-year, to 7,166 properties sold in May 2025. New Zealand, excluding Auckland, saw sales increase by 11.3% year-on-year, to 5,114 properties sold in May 2025
Nationally, the seasonally adjusted figures for New Zealand show a sales count year-on-year increase of 12.7%. Compared to last month, the seasonally adjusted count shows a 5.8% decline
Listings nationwide increased by 2.9% year-on-year, to 9,489. For New Zealand, excluding Auckland, listings fell by 0.9% to 5,835
The median days to sell for New Zealand increased by three days, reaching 47 days. For New Zealand, excluding Auckland, the median days to sell increased by four days, to 47.
Regional Highlights for May
Northland had the highest increase in sales count, up 33.3% year-on-year, from 171 to 228 sales. Tasman followed with a 29.7% year-on-year increase, from 64 to 83 sales.
Only three regions reported an increase in listings compared to last year. Those were:
o West Coast, up 30.4% (46 to 60 listings)
o Gisborne, up 23.3% (30 to 37 listings)
o Nelson, up 15.1% (152 to 175 listings).
Eight regions had year-on-year median price increases. The three largest increases compared to May 2024 were Southland (+10.0%), West Coast (+6.2%) and Nelson (+2.2%).
More information on activity by region can be found in the regional commentaries on the REINZ's Website.
Median Prices
Eight of 16 regions had year-on-year price increases, with Southland leading the way with a 10.0% increase
With Auckland, only one of the seven TAs had a positive year-on-year median price movement; Franklin District with a 4.8% increase
With Wellington, three of eight TAs had positive year-on-year median price movements, with Lower Hutt City leading the way with a 3.5% increase
There were no regional median price records this month
There were no TA median price records this month.
Sales Counts
This month the sales count was the highest in
o West Coast since May 2021
o Northland since July 2021
o Bay of Plenty since November 2024.
In terms of the month of May, May 2025 had the highest Sales Count in
o Canterbury since 2006
o Tasman since 2013
o NZ excl. Auckland, Bay of Plenty, Manawatu-Whanganui, Marlborough, Nelson, Northland, Otago, Southland, Taranaki, Waikato since 2019.
Median Days to Sell
In terms of the month of May, May 2025 had the highest median Days to Sell in
o Gisborne since 2020.
House Price Index (HPI)
Southland is the top-ranked HPI year-on-year movement this month and has been for the past 11 months. Taranaki is second, and Canterbury is third
Regarding the 3-months ending HPI movement, Southland ranks first, Manawatu-Wanganui is second, and Taranaki is third.
Inventory
Ten of 15 regions have had an increase in inventory in May 2025 compared to one year prior
For each of the past 11 months, Otago has had over 10% increases in inventory YOY
For each of the past 13 months, Wellington has had at least 10% increases in inventory YOY.
Listings
Ten of 15 regions had an increase in listings in May 2025 compared to one year prior
Wellington and Southland both had over 15% decreases in Listings in May 2025 compared to May 2024.
Auctions
In New Zealand, there were 875 auction sales (12.2% of all sales) in May 2025. This time last year, there were 847 auction sales (12.9% of all sales).