Investor confidence drops further as buying intentions hit four-year low

Amid ongoing economic uncertainty and trade tensions, investor interest in buying property continues to decline, with just 14% of surveyed landlords indicating plans to purchase within the next 12 months, according to the Crockers Property Management and Tony Alexander Investor Insight survey. 

“This is the lowest level of buying intentions in the four years during which our survey has been running,” said Alexander (pictured above).  

The figure is down from 18% in March and 24% in October 2024, continuing a downward trend that began in mid-2022. 

Meanwhile, 32% of respondents said they intend to sell a property in the coming year, slightly down from 35% in February and March, but continuing an upward trend.  

This results in a net 18% of investors planning to sell—the highest net selling intention ever recorded in the survey. 

Following the Reserve Bank of New Zealand’s April cut to 3.5%, further easing is expected in May, though many investors remain cautious amid ongoing concerns about cashflow, costs, and tenancy conditions. 

Long-term holding still the norm for most landlords 

The assumption that investors flip properties quickly is not supported by survey data. 

 A majority of landlords still indicated long-term intentions: 

• 53% plan to hold for 10+ years or never sell, a figure little changed from 51% in March and one year ago. 
• Only 10% plan to sell within a year, and 7% within 1–2 years. 

Existing properties now strongly favoured over new builds 

One of the clearest trends in the survey is the rising preference for existing homes among those still considering a purchase. As of April: 

• 76% of investors prefer existing properties, up from 69% a year ago, and just 51% in April 2021. 
• Interest in new builds has steadily declined, and interest in developing one’s own property remains minimal. 

Rent increases slowing as market shifts in tenants’ favour 

Investor plans to raise rents are also moderating: 

• 53% of landlords plan to raise rents, down from 80% in May 2024. 
• The average intended increase has fallen to 4.2%, a record low in the four-year history of the survey. 

“Since June of last year there has been a downward trend in place in the proportion of investors who say they intend raising their rents over the coming year,” Alexander said. 

Lending conditions ease as banks become more willing 

Landlords are reporting more favourable treatment from lenders, reversing the tight credit conditions of recent years. 

“In this month’s survey of existing property investors a net 11% have reported that they are finding their bank more willing to advance funds,” Alexander said.  

This marks a turnaround from a net 2% who found banks more restrictive a year ago, and a major shift from the net 60% reporting tightening credit in November 2021. 

Insurance, rates, and maintenance top investor concerns 

When asked about concerns for future returns, investors highlighted several key cost pressures: 

• Insurance, council rates, and maintenance were the most cited issues. 
• Worries about falling house prices and rising interest rates have also ticked up recently. 
• Although concerns about insurance costs are easing slightly, the trend is marginal. 

“These strong negative impacts on investor cashflows probably go a long way to explain the decline in net purchasing intentions discussed above.” 

Record number of landlords struggling to find good tenants 

A record net 32% of landlords now say it’s hard to find good tenants, up from a net 25% saying it was easy in April 2024. 

“For the second month in a row a record has been set in the net proportion of existing landlords saying that they are having difficulty finding a good tenant,” Alexander said. “The market has strongly turned in favour of tenants and against investors this past year.” 

Access the Tony Alexander Survey Report April 2025.