The property market is turning a corner, with improved conditions boosting optimism for buyers and sellers alike.
CoreLogic forecasts a seven percent rise in property values by 2025, signalling a steady and sustainable recovery. Combined with increased affordability and growing buyer confidence, the market is primed for those ready to make their move.
“With stock levels at an eight-year high and interest rates easing, buyers have more choice and better opportunities than they’ve had in years,” LJ Hooker Group Head of Network NZ Campbell Dunoon said.
“For sellers, the stable environment offers a chance to secure better results with more buyers providing competition.”
Buyer confidence boosted
Recent improvements in borrowing conditions and market balance are driving renewed confidence. The Reserve Bank of New Zealand’s decision to cut the Official Cash Rate (OCR) to 4.25 percent is lowering mortgage rates and reducing financial pressure for buyers. Meanwhile, new listings are up 3.9 percent year-on-year, giving buyers a greater variety of options while providing more confidence for sellers.
“Lower interest rates aren’t just making mortgages more affordable—they’re helping people plan with confidence. This stability is encouraging more first home buyers and investors to re-enter the market,” Dunoon said.
“Not to forget, lower interest rates bring a sign of relief to borrowers who are due to refinance. During these tough economic times, this will allow property owners to keep more of their money or pay down their mortgage faster.”
A balanced market brings opportunities
The national average property value sits at $800,795, according to CoreLogic’s Home Value Index (HVI). While this reflects a modest 0.4 percent dip in November, the long-term view is strong, with property values remaining 16 percent above pre-COVID levels.
“This isn’t a market correction—it’s a healthy recalibration,” Dunoon said.
“Buyers have an opportunity to secure properties in a more balanced environment, while sellers can achieve better outcomes with the right strategy and support.”
Regional highlights
Across New Zealand, regional markets are showing a mix of steady performance and pockets of opportunity, reflecting the varied dynamics at play.
In Auckland, certain areas such as the North Shore saw slight growth, with property values increasing by 0.3 percent. This is largely driven by continued demand for well-connected suburbs offering a mix of lifestyle and convenience. The Auckland market, while balanced, still provides a chance for buyers to negotiate effectively, especially in higher-value suburbs.
Further south, Dunedin stood out with a 0.4 percent rise in values, supported by strong demand for affordable housing options. This resilience highlights the city’s appeal to first home buyers and investors looking for solid returns in a manageable price range.
In Nelson, the market continues to demonstrate stability, with property values rising by 0.3 percent. Known for its desirable lifestyle, the region remains attractive to retirees and those seeking coastal living, providing sellers with a consistent pool of motivated buyers.
Meanwhile, Wellington experienced a 1.2 percent decline in November, reflecting the competitive nature of its market. However, this dip offers a unique opportunity for buyers to secure properties in the capital city at more favourable terms, particularly as the market is expected to stabilise further in the coming months.
“Every market has its own story, whether it’s Dunedin’s affordability, Wellington’s opportunities, or Auckland’s optimism. Understanding these regional nuances is crucial for anyone looking to buy or sell property,” he said.
“A local expert can provide the insights needed to achieve the best possible outcome.”
While trends vary by region, the market offers opportunities for both buyers and sellers, and taking the time to understand local dynamics can make all the difference.
A positive outlook for 2025
As we head into 2025, the property market is expected to strengthen further. CoreLogic’s forecast of a seven percent rise in property values reflects increased buyer activity and stabilised economic conditions.
“We’re seeing the pieces fall into place for a sustainable growth,” Dunoon said.
“Sellers who list now can benefit from rising buyer interest, while buyers who act quickly may secure properties before values begin their steady climb. The property market is shifting into a new phase. This balance between buyer choice and seller opportunity won’t last forever, so it’s important to act while the conditions are right.”
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