21-05-2025
Signals point to a steady upturn for property
'Despite these signs of improvement, the market remains tilted in favour of buyers,' Davidson said. 'Stock levels are still elevated by historical standards, which will likely keep price growth in check.'
Mortgaged multiple property owners are also regaining ground. This group accounted for 24% of April's sales – the highest share in more than three years. Lower mortgage rates are reducing cashflow shortfalls, improving the financial appeal of property investment.
Davidson said the outlook for 2025 remains cautiously positive. 'We're expecting a moderate upswing, with national property values forecast to rise around 5% for the year.
'Lower mortgage rates will be a key driver. But we're also watching the wider economy, the labour market, and the impact of lending restrictions, particularly debt-to-income limits.'
Highlights from the May 2025 Housing Chart Pack include:
New Zealand's residential real estate market is worth a combined $1.64 trillion.
The CoreLogic Home Value Index shows property values across New Zealand increased 0.3% in April. Over the three months to April, there was a 0.9% rise in median property values across NZ.
The total sales count over the 12 months to April is 84,226.
Total listings on the market were 31,035 in April. The total number of properties listed on the market remains elevated, although the seasonal fall for new listings flows means that agreed sales have started to eat into stock levels a little in the past few weeks.
On rents, the pace of growth remains subdued, with net migration having fallen a long way from its peak, and the stock of available rental listings on the market still elevated.
Gross rental yields now stand at 3.9%, which is the highest level since mid-2015.
Inflation is back in the 1–3% target range, and after April's 0.25% cut, further Official Cash Rate reductions seem likely in the coming months.
The Chart of the Month shows first home buyers are taking advantage of multiple funding options to get a foot on the property ladder and made up 27% of property purchases in April
