Average NZ property value sees 'modest' uptick in June
The average property price is now $815,389, according to the index. This has reversed two minor falls of 0.1% in April and May.
Since the January 2022 peak, property values remain down 16.1%. However, Cotality said they have managed to "edge up" by a total of 1.1% since September last year, and by 0.6% in 2025 so far.
"Values around the main centres were either flat in June or up slightly," according to the report.
In Auckland and Wellington, prices were stable. But property prices rose 0.2% in Dunedin, 0.3% in Hamilton, and 0.6% in both Tauranga and Christchurch.
ADVERTISEMENT
Cotality NZ chief property economist Kelvin Davidson said the result emphasised the variability of the market.
"On one hand, mortgage rates have come down a long way, and that benefits borrowers whether they're in Whangārei or Winton. But the normal upwards influence this would tend to have on sales volumes and property values is being dampened by other forces."
Davidson said in particular, the "abundance of listings on the market" means most buyers "aren't in a rush" and can be "quite tough when it comes to price negotiations".
"The subdued labour market remains an important factor too. After all, it's not only the direct job losses that are problematic, but a reduction in security for those who have kept their jobs will also be weighing on the property market.
"Of course, problems for some are opportunities for others, and a soft market is providing plenty of scope for first home buyers."
Davidson added mortgaged multiple property owners also remains on the comeback trail, particularly at the smaller end – those buying their first rental investment, or perhaps their second."
Outside of the main centres, property values were "a mixed bag" in June.
ADVERTISEMENT
Rotorua (-0.7%), Gisborne (-0.2%), Whanganui (-0.1%) and Hastings (-0.1%) were all down in June.
However, Whangārei (0.4%), Palmerston North (0.5%), Invercargill (0.4%), and Queenstown (0.6%) all saw modest rises.
On the regional results, Davidson said it is "always hard to cast a wide net" over every region to determine the factors impacting the individual housing markets of every region.
"At present, for example, lower mortgage rates are obviously a common factor, while some will be faring better than others off the back of a strong dairy sector.
"Ultimately, the wider economic uncertainty we're currently seeing and a subdued labour market still seem to be causing property market variability from month to month in a number of regions."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
3 days ago
- NZ Herald
Kaipara councillor warns Northlanders face $4000-plus water rates
Affordability for users was the big elephant in the room, Paniora said. She said financial metrics for the new CCO meant user charges within 2.5%-3.5% of household income. Paniora said that meant Northlanders paying between $2888 to $4430, based on Infometrics' average $115,536 annual household income. Drinking water and wastewater assets, debts and services for about 100,000 Northlanders will shift from the three councils to the CCO. KDC yesterday voted to become part of the region's Local Water Done Well (LWDW) plan at a meeting in Mangawhai. WDC kick-started the councils' move toward the regional three-council CCO on July 24. FNDC councillors will decide on whether to step into the plan today. Whangārei's strong drinking water and wastewater asset position has become a hot potato amidst the changes. KDC chief executive Jason Marris said his council had won the inclusion of cross-subsidisation in the new CCO. This had meant concession from Northland's two other district councils. The new CCO's agreement says cross-subsidisation, which it calls harmonisation, will be considered within three years of the company's 2027 establishment. But KDC will be pushing for it to happen as soon as possible within that timeframe. KDC general manager corporate services Sue Davidson said the CCO's initial principles required ring-fencing of debt and pricing, with a pathway to harmonisation to be considered within three years of establishment. 'However, KDC will work towards including harmonisation as early as possible in the implementation phase,' Davidson said in meeting agenda papers. This means Whangārei ratepayers will likely be subsidising those in Kaipara. If KDC didn't move on to the regional CCO, it faced a potential Local Water Done Well financial crisis, she said. KDC could not achieve financial sustainability delivering water services, if it adopted an in-house business unit to do so. The council is still carrying debt from the controversial Mangawhai sewerage scheme and has little financial room to move for required drinking water and wastewater services fixes to meet tougher new water reform requirements, which are monitored through regulator Taumata Arowai. KDC initially wanted to shift its council water services into Auckland's Watercare instead of joining with a Northland CCO. But Auckland Council turned that move down, before the September 3 deadline for regions to get their water services plan to the Government. Financial contributions to KDC from developers operating in Kaipara's Mangawhai, New Zealand's fastest-growing coastal settlement, have been significantly factored into the new Northland CCO meeting LWDW financial sustainability requirements. Davidson said there was significant risk around the amount of development contribution money factored into the new model's financials. 'The initial calculations were considered too aggressive and were moderated on request of elected members. The numbers remain ambitious and continue to carry significant risk of being achieved,' Davidson said. Paniora said the new arrangements did not regard water as a taonga as had already been established by the Treaty of Waitangi. She said Māori as tangata whenua had been left out of the conversation regarding the new plan. Paniora said the only hope for consideration of this aspect lay with FNDC. She said she couldn't vote in favour of today's KDC decision and wanted to wait for the outcome of tomorrow's FNDC decision. The new three-council CCO plan for Northland allows an off-ramp for FNDC not to sign up. In that case there would be a two-council CCO. Kaipara Mayor Craig Jepson, Deputy Mayor Jonathan Larsen and councillors Mike Howard, Gordon Lambeth, Ash Nayyar, Mark Vincent and Rachael Williams voted to be part of the Northland plan. Paniora and councillor Eryn Wilson-Collins voted not to be. ■ LDR is local body journalism co-funded by RNZ and NZ On Air.
1News
4 days ago
- 1News
Record number of mortgage holders switching lenders
A record number of New Zealand mortgage holders changed lenders in June, with more than 3500 borrowers refinancing their loans worth a total of $2.5 billion in lending. Short-term loan structures, minimal break fees, and competitive cashback offers drove the refinancing surge, which was the largest since the Reserve Bank began tracking the data in 2017. Cotality NZ chief property economist Kelvin Davidson said the elevated level of switching likely reflected that borrowers were actively monitoring rates and terms. "With nearly 14% of mortgages on floating rates and another 39% fixed and due to roll off by the end of 2025, a large number of borrowers are in a position to switch lenders without large break fees. This dynamic may continue to support elevated levels of refinancing activity in the near term." New mortgage lending activity, which covers house purchases, loan top-ups, and bank switches, reached $8.3 billion in June this year, up $2.6 billion from the same month last year. ADVERTISEMENT Davidson said it should be noted that June 2024 was a "one-off soft month". The morning's headlines in 90 seconds, including UK set to recognise Palestine, fire closes another Auckland supermarket, and Australia's plan to clamp down on YouTube access. (Source: 1News) First home buyers, investors, and owner-occupiers all contributed to the upswing. Loan-to-value ratio limits were still not really being tested, Davidson said. "12.1% of lending in June was done with a deposit less than 20% – but this type of lending remains popular with FHBs. They still account for 75-80% of all low-deposit owner-occupier activity." Nearly half of all first home buyers entered with a less than 20% deposit. Interest-only lending remained below historical peaks, with 15% of owner-occupiers and 35% of investors opting for that structure, down from 30% and 50% apiece in 2018. There was no strong indication interest-only lending was being used to manage financial stress as was observed during Covid. ADVERTISEMENT High debt-to-income (DTI) lending is gradually increasing. In June, 10.2% of investor loans had a DTI above 7, and 7.5% of first-home-buyer loans exceeded a DTI of 6. Both remain well below the 20% regulatory speed limits. Sales volumes have returned to typical levels, and stock on the market is edging lower, partly due to vendor withdrawals. National median house prices rose 0.6% in the first half of 2025, with a further 1–2% increase expected in the second half. Falling interest rates may influence borrower behaviour, Davidson said. "As loans mature, borrowers will need to decide not only what term to refix on, but also what to do with their 'cash windfall' from lower repayments. Some may use that capacity to reduce the length of their mortgage (by keeping repayments the same), while others may save it, thereby reducing the pass-through to economic activity." A small group of borrowers remained on ultra-low five-year fixed rates of around 3%, set during the mid-2021 trough, he added. "While they'll eventually face higher repayments, the benefits they've already seen have been significant in the past few years."
RNZ News
6 days ago
- RNZ News
Job advertisements fall for a second month
Job ad volumes were mixed across the regions, with Gisborne, Marlborough and Southland the only region to see month-on-month growth in June. Photo: 123RF The mid-year economic slowdown appears to be weighing on the job market with job advertisements falling for a second month. Data from employment website Seek NZ showed job ads fell 3 percent in June from a month earlier , and 3 percent lower than a year ago. Applications per job ad - recorded with a one-month lag - were down 2 percent monthly. It comes as various economic datasets point to the country's economic recovery stalling in the middle of the year. Seek country manager Rob Clark said job ad levels remained broadly flat for the past year. "While the volume remains below pre-Covid levels, there are pockets of growth, which should be cause for some optimism," he said. Job ad volumes were mixed across the regions, with Gisborne, Marlborough and Southland the only region to see month-on-month growth in June. In Auckland and Canterbury, volumes fell 2 percent in June, while Wellington fell 4 percent. Otago was flat, while Waikato fell 4 percent. The only industry to see an increase in volumes was Information & Communication Technology, with more demand for ICT managers and networks & systems administrators. "Despite a monthly dip in June, demand within government and defence has jumped 51 percent year-on-year, and we're seeing a growing number of industries return to annual growth within the professional and consumer services sectors," Clark said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
