In February 2025, New Zealand's property market exhibited notable trends, reflecting a tricky interplay between supply, demand, and pricing.

National Overview

• Stock Levels: The total number of properties available for sale nationally reached 35,712, marking a 10.2% increase from January and the highest level since 2015. This surge provides buyers with a broader selection, fostering a more balanced market.
• New Listings: February saw 11,363 new property listings, a 3.6% decrease compared to the same month last year. This decline suggests a cautious approach among potential sellers, possibly influenced by current market conditions.

• Average Asking Prices: The national average asking price dipped to $851,090, representing a 4.7% decrease year-on-year and a 2.0% drop from the previous month. This downward adjustment indicates that sellers are aligning their expectations to meet buyer affordability.

Regional Highlights: Hauraki and Coromandel

• Hauraki District: As of December 2024, the average property value in the Hauraki District was $649,756. Over the preceding three months, property prices in Hauraki experienced a 3.65% increase, although they remained 6.98% lower than the same period in the previous year.
• Coromandel: As of December 2024, the average property price in Thames-Coromandel was $1,193,828, with prices rising only 0.54% over the prior three months. Over the previous 20 years, property prices in the region have increased by an average of 5% pa. After peaking in April 2022, prices dropped 21% before reaching their lowest point in August 2023. Since then, values have risen nearly 5%, although they remain 17% below the 2022 peak. However, if we disregard the post-Covid spike — which was an unnatural market surge — property values continue to align with the long-term average growth of 5% per annum.

Market Dynamics

The current market environment is characterized by increased property availability, allowing buyers more choice and time for due diligence & decision-making. Sarah Wood, CEO of realestate.co.nz, describes the market as "breezy," contrasting with the frenetic activity observed in 2021. She notes that "buyers have time to breathe and do their due diligence as stable market conditions continue, while properties are still selling through, which is good news for sellers."

According to Tony Alexander's Real Estate Agents Survey, buyer motivations are shifting. He notes that "a rising number of agents are reporting more investors returning to the market, while first-home buyers remain active due to easing interest rates." However, Alexander also highlights that some buyers are still adopting a wait-and-see approach, anticipating further price drops or interest rate adjustments​. Concurrently, sellers are adjusting their price expectations to align with buyer affordability, contributing to a more balanced and sustainable market.

Long-Term Trends

Over the past 25 years, New Zealand has witnessed a substantial escalation in house prices. In 2000, the median sale price for a house was approximately $170,000; today, it stands around $800,000. This increase is attributed to factors such as significant population growth—from 3.88 million in 2000 to 5.3 million in 2025—and a lag in housing development to meet this demand.

Future Outlook

Looking ahead, a Reuters poll of property market experts forecasts a 5.0% rise in New Zealand home prices in 2025, driven primarily by falling interest rates. The Reserve Bank of New Zealand has reduced interest rates by 175 basis points since August, enhancing housing affordability. However, challenges persist due to sluggish wage growth, reduced job security and elevated unemployment rates. The average property price in New Zealand was NZ$750,000 in January 2025, approximately six times the average household income, and seven times in Auckland.

In summary, February 2025 reflects a New Zealand property market in transition, with increased stock levels and moderated prices offering opportunities for both buyers and sellers. The evolving economic landscape, influenced by interest rate adjustments and demographic shifts, will continue to shape market dynamics in the coming months.