Explore the latest investor trends in NZ's property market
The latest January 2025 Investor Insight survey by Crockers Property Management and Tony Alexander (pictured above), with 354 responses, showed a New Zealand property market characterised by caution and shifting dynamics among landlords and investors.
Investor sentiment and market trends
Purchasing interest remains low
The survey indicated that net interest among existing landlords in acquiring more properties continues to be subdued. Those who are interested in purchasing are primarily looking at existing properties rather than new constructions.
Challenges in tenant placement
A significant finding from this year’s survey is the increasing difficulty investors face in finding suitable tenants. There has been a noticeable deterioration compared to last year, with more landlords struggling to secure reliable renters.
Economic concerns impacting investment
Concerns about falling house prices and rising interest rates have intensified recently, adding layers of uncertainty to investment decisions and market stability.
Selling and buying intentions
Stable selling plans
A steady 7% of investors plan to sell a property within the next year, mirroring the mild improvement seen since mid-2024. However, this is a significant shift from the more active buying and selling intentions seen during 2021-22.
Buying preferences
Interest in buying property remains cautious, with only a small fraction of investors planning to acquire new properties. Among those considering purchases, 19% prefer new properties, while a lesser 14% are inclined to undertake property developments themselves, the survey found.
Rental market adjustments
Potential rent increases
More than half of the investors surveyed anticipated raising rents in the coming months, although this intention has decreased since mid-2024. The planned average rent increase is around 4.3%, a slight decrease from previous months, signaling a potentially stabilising rental market.
Banking relations and financial concerns
Banking attitudes
Landlords reported mixed experiences with banks, with a small net percentage indicating that banking attitudes towards financing are becoming more favorable, though the improvement is less pronounced than in previous months.
Top investor concerns
Insurance costs and council rates continued to be primary concerns for property investors.
Additionally, worries about maintenance costs and the broader economic impact of interest rates are prevalent, reflecting broader uncertainties in the property investment sector.
Tenant acquisition challenges
Finding quality tenants has become increasingly difficult, a trend that contrasts sharply with conditions earlier in the year. This shift underscores the changing dynamics in the rental market, influenced by economic conditions and possibly tighter regulations.
Access the full report here.
