Vendors adjust expectations as market conditions shift and stock levels soar
Amid rising concerns about political instability, global trade tensions, and economic uncertainty, New Zealand’s property market underwent a notable adjustment in the first quarter of 2025, with over $63 million in asking price reductions recorded nationwide.
According to new data from realestate.co.nz, sellers collectively slashed $63,044,313 from their original listing prices—down slightly from $69.6m during the same period in 2024.
“Nationally, the average asking price has been trending downward over the past year, and stock levels are at decade-highs,” said Vanessa Williams (pictured), spokesperson for realestate.co.nz.
“We’re starting to see sellers come to market with more realistic expectations from the outset, which reduces the need for major price cuts later on.”
The data measures the difference between the original asking price and the price at which a listing was either sold or withdrawn—offering insight into seller sentiment and the state of buyer demand.
Auckland, Waikato, and Wellington see biggest dollar declines
Regionally, the highest total price reductions occurred in New Zealand’s key markets:
- Auckland: Down $9,823,100
- Waikato: Down $7,013,100
- Wellington: Down $5,928,009
“All up, that’s millions of dollars no longer circulating in the market. Buyers aren’t paying it, and sellers aren’t receiving it,” Williams said.
More vendors also chose to reduce prices in Q1 2025, with 1,686 listings discounted, compared to 1,624 in Q1 2024.
Auckland tops list for highest average price drop per property
Nationally, properties that were discounted saw an average asking price reduction of $37,393. However, several regions posted significantly higher average cuts:
- Auckland: Down $59,175
- Coromandel: Down $58,602
- Wellington: Down $54,385
In contrast, the smallest average price adjustments were seen in:
- Wairarapa: Down $24,346
- Otago: Down $26,220
- Hawke’s Bay: Down $26,490
“For sellers, it offers a realistic view of how much they may need to negotiate,” Williams said. “For buyers, it can give a sense of how much wriggle room might be available when making an offer.”
She added that elevated stock levels and a slower market pace allow for more negotiation between buyers and sellers.
Premium listings lead with biggest dollar cuts
The five largest individual price drops for Q1 2025 came from high-end listings, with reductions ranging from $300,000 to over $600,000:
- Auckland: Home reduced by $604,500 (from $4,899,500 to $4,295,000)
- Queenstown: Down $400,000 (from $3.9M to $3.5M)
- Northland: Down $360,000 (from $950,000 to $590,000)
- Mount Maunganui: Down $346,000
- Whitianga: Down $300,000
“At the peak of the market in 2022, it wasn’t unusual for properties to sell above the asking price,” Williams said. “What we’re seeing now is a very different phase—one where sellers are having to meet buyers where they are.”
