Explore key insights from the latest NZHL report
As 2025 progresses, New Zealand’s property market exhibits cautious optimism, with a steady transition towards recovery.
This sentiment aligns with the broader market conditions and buyer behaviours reported in the latest NZHL Property Insights, authored by economist Tony Alexander (pictured), underscoring a careful yet hopeful outlook for the sector.
Market observations: Buyer’s prerogative
One of the standout findings is the high inventory of homes, which has led to buyers feeling no urgency in their purchasing decisions. With a wide selection of properties available, buyers are taking their time to choose the most suitable options.
Property prices have remained static, with some regions even noting a slight decline, reinforcing the buyer’s advantage in the current market.
Interest in townhouses has notably decreased, as highlighted by agent comments.
Attendance at auctions and open houses: A mixed picture
The NZHL report indicated a cooling trend in auction and open house attendance.
While 11% of agents reported an increase in auction attendees, this is a decrease from previous months.
Similarly, the number of people attending open homes is up by 27%, yet this figure represents a decline from a more robust engagement earlier in the year.
Price trends: Stability amidst uncertainty
The data suggests a general stability in house prices, with only a minimal percentage of agents (3%) observing a decline.
This stability follows a period of falling interest rates, which seems to have arrested the price drops but has not initiated any significant price increases.
The role of FOMO in buyer behaviour
The NZHL report also sheds light on the psychological aspect of buying, noting a decrease in FOMO (fear of missing out) among buyers. From a high of 40% in late 2023, the sentiment dropped drastically in 2024, with only 14% of agents reporting FOMO among buyers in the latest survey.
Engagement from first-home buyers and investors
First-home buyers remain active, with over half of the agents noting an increase in this group’s market participation.
In contrast, investor interest is less stable, showing a decline from previous peaks.
The fluctuating investor interest suggests a market still finding its equilibrium post-economic downturn.
Global interest and local reactions
While international inquiries into New Zealand properties have decreased slightly, local interest in property appraisals has spiked. This surge is likely due to sellers trying to capitalize on or react to market changes, indicating a responsive market that is attentive to both global and local economic signals.
Buyers’ concerns and market prospects
Financing and job security are paramount concerns for buyers, though the intensity of these worries has decreased slightly compared to previous years.
The NZHL report also noted a recent rise in concerns about potential price falls, signalling a cautious outlook from potential buyers.
Current market power dynamics
The survey revealed that buyers currently hold more negotiating power, a significant shift from the seller’s market conditions that prevailed until late 2021. Agents report that sellers are now more eager to close deals, a reflection of the changed market dynamics.
Investor behaviour: Selling and buying trends
Investors are increasingly looking to sell properties, motivated by rising operational costs and a shift in market conditions that ended a three-decade period of rising house prices.
On the buying front, investors are cautious, with many seeking bargains amidst a subdued price expectation environment.
Overall, the NZHL Property Insights report paints a picture of a market in a state of cautious optimism, with buyers taking a deliberate approach amidst a backdrop of economic recalibration and shifting investor sentiments.
