Authored by the expert who managed and guided the team behind the New Zealand Property Pack
Yes, the analysis of Auckland's property market is included in our pack
Auckland property prices are showing a clear recovery in 2025, with a 2% quarterly increase marking the strongest growth in three years.
After a significant downturn that saw prices fall 21.6% from their November 2021 peak, Auckland's residential property market has stabilized and begun climbing again. The average property value reached NZ$1.307 million by February 2025, while the median sale price stood at NZ$1 million in April 2025.
If you want to go deeper, you can check our pack of documents related to the real estate market in New Zealand, based on reliable facts and data, not opinions or rumors.
Auckland property prices are rising again after bottoming out in 2023, with growth expected to continue through 2026.
Interest rate cuts and strong immigration are driving demand, though affordability remains a major challenge for buyers.
| Metric | Current Value (June 2025) | Change YoY |
|---|---|---|
| Average Property Value | NZ$1,307,000 | -3.85% |
| Median Sale Price | NZ$1,000,000 | -4.0% |
| Sales Volume | Up 20% | +20% |
| Days to Sell | 40 days | -2 days |
| 2025 Price Forecast | +6-8% | Positive growth |
| 2026 Price Forecast | +5% | Continued growth |
| Mortgage Rates | Mid 3% | Falling |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
How much have Auckland property prices increased lately?
Auckland property prices have shown a modest recovery of 2% in the first quarter of 2025 after reaching their lowest point in May 2023.
The Auckland residential market experienced a significant correction from its November 2021 peak, with prices falling 21.6% to bottom out in 2023. However, as we reach mid-2025, the market has stabilized and begun its recovery phase. The average property value climbed from NZ$1.281 million to NZ$1.307 million between November 2024 and February 2025.
Recent data shows the median sale price in Auckland at NZ$1 million as of April 2025, representing a 3.85% decline year-over-year but a clear stabilization from the steep drops seen in 2022-2023. The quarterly growth of 2% marks the strongest performance since early 2022, with areas like Rodney district leading the recovery with a 3.3% increase to NZ$1.437 million.
Sales volumes have surged 20% year-over-year as of early 2025, indicating renewed buyer confidence. The number of properties selling has increased significantly, with January 2025 recording 17% more new listings than the same period in 2024.
The recovery remains uneven across Auckland, with outer suburbs like Hibiscus Coast and Franklin showing stronger resilience while central suburbs continue to lag behind the regional average.
What are the current mortgage rates in Auckland?
Mortgage rates in Auckland have fallen to the mid-3% range as of June 2025, providing significant relief to homebuyers.
The Reserve Bank of New Zealand has aggressively cut the Official Cash Rate (OCR) throughout late 2024 and early 2025, bringing mortgage rates down from their peak of over 7% in 2023. Current one-year fixed rates hover around 3.5-4%, while two-year rates sit slightly higher at 4-4.5%.
Banks are competing fiercely for mortgage business, with major lenders offering special rates below their advertised rates for borrowers with at least 20% equity. First-home buyers with smaller deposits are typically paying 0.5-1% more than the best advertised rates.
Financial experts predict rates will continue to fall through 2025, with some economists forecasting rates could bottom out around 3.1% by August 2025. The Reserve Bank is expected to make further cuts at their August meeting, potentially reducing rates by another 0.25-0.5%.
These lower rates have dramatically improved borrowing capacity, with a typical Auckland household able to borrow approximately NZ$150,000 more than they could at the peak of interest rates in 2023.
Which Auckland suburbs are seeing the biggest price increases in 2025?
Outer Auckland suburbs are leading the property price recovery, with Rodney, Franklin, and the North Shore showing the strongest growth.
Rodney district has emerged as the top performer with property values jumping 3.3% in the first quarter of 2025 to reach NZ$1.437 million. Beach suburbs like Omaha have hit new record highs, with the average property value reaching NZ$2.902 million after a NZ$150,000 increase. Point Wells similarly saw values rise NZ$149,000 to NZ$2.486 million.
The North Shore recorded a 0.9% increase in March 2025, while Papakura and Franklin both grew by 0.8% and 0.5% respectively. These areas have benefited from their relative affordability compared to central Auckland, attracting families seeking more space and value.
It's something we develop in our New Zealand property pack.
In contrast, central Auckland suburbs continue to struggle, with areas like Mount Eden, Ponsonby, and Herne Bay still trading 13-14% below their 2021 peaks. The inner-city apartment market has been particularly affected, with reduced demand from investors impacting prices.
Where did Auckland property prices decline the most recently?
Central Auckland suburbs have experienced the steepest price declines, with some areas down 14% compared to the regional average drop of 9%.
Mount Eden, Mount Albert, Avondale, Ponsonby, Herne Bay, One Tree Hill, Royal Oak, and Onehunga have all seen property values fall approximately 14% since the 2021 peak. These traditionally premium suburbs have been hit hardest by the market correction, with reduced demand for properties with redevelopment potential contributing to larger declines.
The apartment market in central Auckland has underperformed significantly, with units showing much weaker growth than standalone houses. Areas with high concentrations of apartments, such as the CBD and surrounding suburbs, have seen values drop more than the Auckland average.
Sandringham recorded a 16% decline in property values, while Henderson saw a 10% drop. These middle-ring suburbs have been affected by both affordability pressures and changing buyer preferences post-pandemic.
The varied performance across different property types in these areas - including apartments, multi-units, and standalone homes - has contributed to the overall weakness in central Auckland's property market.
Get fresh and reliable information about the market in Auckland
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What are Auckland property prices forecast for 2026?
Auckland property prices are forecast to rise 5% in 2026, following an expected 6-8% increase through 2025.
Major banks and economic institutions have converged on similar predictions for Auckland's property market over the next 18 months. ASB economists are the most optimistic, forecasting up to 10% growth in 2025, while Westpac predicts 8% for 2025 and 5% for 2026. ANZ and Kiwibank economists forecast more moderate growth of 5-7% annually.
The consensus view suggests Auckland property values will return to their 2021 peak by mid-2027, assuming annual growth rates of 5-6%. This recovery timeline reflects the depth of the correction experienced in 2022-2023 and the ongoing affordability challenges facing buyers.
Several factors support these positive forecasts, including continued interest rate cuts, strong immigration driving population growth, and constrained housing supply. Auckland's population grew by 47,000 in the year to June 2024, requiring approximately 15,667 new homes, but only 15,263 were built.
However, economists warn that global economic uncertainty, particularly regarding China's recovery and potential trade conflicts, could impact these projections. Affordability constraints may also limit price growth if values rise too quickly relative to incomes.
Which Auckland property types are experiencing the strongest demand?
Standalone houses are experiencing the strongest demand in Auckland, with no valuers reporting declining interest in this property type during Q1 2025.
Market data reveals a clear hierarchy in property performance, with standalone houses appreciating faster than townhouses, which in turn outperform apartments. Over the long term, houses have beaten townhouses in capital growth 89% of the time in Auckland, though the margin is relatively modest at 0.62% annually.
First-home buyers are driving much of the current demand, particularly for recently renovated or new-build standalone houses in affordable suburbs. These buyers accounted for 27% of all purchases in 2024, a record high share that has continued into 2025.
Townhouses are attracting interest from downsizers and young families seeking a compromise between apartment living and traditional houses. Modern townhouse developments with good amenities and locations near transport links are performing particularly well.
Apartments continue to underperform, with annual growth rates averaging 2.82% lower than houses. However, there's emerging demand from young professionals for quality apartments in urban areas with good public transport access, suggesting a potential turnaround in this segment.
How are current Auckland prices compared to the 2021 peak?
Auckland property prices remain 21.6% below their November 2021 peak, despite recent recovery trends.
At the height of the market in November 2021, Auckland's average property value reached approximately NZ$1.67 million. Current values of NZ$1.307 million represent a significant discount, though the gap is narrowing with each passing month of recovery.
The severity of the correction varied significantly across Auckland. Central suburbs experienced drops of up to 37% from peak values, while outer areas like Rodney and Franklin saw more modest declines of 4-10%. This disparity has created varied recovery timelines across the region.
Based on current growth trajectories and economist forecasts of 5-6% annual increases, Auckland property values are expected to return to their 2021 peaks by June 2027. This timeline assumes no major economic shocks or policy changes that could accelerate or delay the recovery.
The extended recovery period reflects both the magnitude of the previous boom and the fundamental shift in market conditions, including higher interest rates compared to the near-zero rates that fueled the 2020-2021 surge.
What's driving Auckland's property market recovery in 2025?
Lower interest rates and strong immigration are the primary drivers of Auckland's property market recovery in 2025.
The Reserve Bank's aggressive rate-cutting cycle has been the game-changer for market sentiment. With the OCR falling from 5.5% to current levels and further cuts expected, mortgage affordability has improved dramatically. Buyers can now borrow significantly more than they could just 12 months ago, reigniting demand.
Immigration has surged back to pre-pandemic levels, with Auckland's population growing by 47,000 people in the year to June 2024. This influx of new residents creates immediate housing demand, particularly in areas with good employment opportunities and amenities. The city's role as New Zealand's economic hub, accounting for 38% of national GDP, continues to attract both international and domestic migrants.
This information is covered in detail in our New Zealand property pack.
Housing supply constraints are amplifying price pressures. Building consents in Auckland fell 7.7% year-over-year to 13,503 units in 2024, well below the level needed to match population growth. Construction industry challenges and council planning restrictions continue to limit new housing development.
Improved buyer confidence has created momentum in the market, with sales volumes up 20% year-over-year and auction clearance rates improving steadily through early 2025.
We made this infographic to show you how property prices in New Zealand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Are Auckland apartments a good investment in 2025?
Auckland apartments present a mixed investment opportunity in 2025, with lower entry prices but historically weaker capital growth compared to houses.
Apartments have consistently underperformed houses and townhouses in Auckland, with annual growth rates averaging 2.82% lower than standalone properties. The apartment market was particularly affected during the recent downturn, with central city units experiencing some of the steepest value declines.
However, several factors suggest apartments may offer opportunity for savvy investors. Entry prices are significantly lower than houses, improving rental yields in a high-demand rental market. Young professionals increasingly prefer urban living with proximity to work and amenities, supporting rental demand.
New apartment developments with modern amenities, energy-efficient features, and smart home technology are attracting premium rents. The best-performing apartments are those in well-managed buildings near public transport, particularly along the City Rail Link route.
Investors should carefully consider location, building quality, and body corporate fees when evaluating apartment investments. While capital growth may lag houses, the combination of lower entry costs and solid rental returns can still deliver acceptable total returns.
How long does it take to sell a property in Auckland now?
Properties in Auckland are selling in an average of 40 days as of June 2025, slightly faster than the national average.
The current selling timeframe represents an improvement from 42 days a year ago, indicating a tightening market with increased buyer activity. This compares favorably to the long-term Auckland average of 37 days, suggesting the market is approaching more normal conditions.
Selling times vary significantly by suburb and property type. Well-presented homes in desirable school zones often sell within 2-3 weeks, while properties requiring renovation or in less popular areas may take 60-90 days. The spring selling season typically sees faster sales as buyer activity peaks.
Auction clearance rates have improved throughout 2025, with approximately 39% of properties selling under the hammer. Properties that don't sell at auction typically receive offers within 2-3 weeks as vendors adjust price expectations to meet the market.
Real estate agents report that correctly priced properties with good presentation are attracting multiple offers, particularly in the sub-NZ$1.5 million range where first-home buyer and investor activity is strongest.
What are the main risks to Auckland property prices going forward?
Global economic uncertainty and local affordability constraints pose the main risks to Auckland's property price growth.
International factors present significant downside risks, with China's struggling economy potentially impacting New Zealand's export earnings. Trade tensions under the new US administration could trigger global economic instability, affecting local interest rates and employment. These external shocks could quickly dampen buyer confidence and slow price growth.
Auckland's severe affordability crisis remains a fundamental constraint on price growth. Despite recent corrections, the city maintains a median multiple of 8.2, classified as "severely unaffordable" by international standards. This limits the pool of potential buyers and caps how high prices can rise relative to incomes.
To make informed decisions about these risks, consult our New Zealand property pack.
The construction industry's ongoing struggles could paradoxically both support and threaten prices. While reduced supply typically pushes prices up, widespread building company failures could shake market confidence and reduce overall transaction volumes.
Rising unemployment, forecast to potentially hit 5% in 2025, would significantly impact buyer demand and could trigger renewed price declines, particularly if combined with any reversal in interest rate cuts.
Should you buy property in Auckland in 2025?
Auckland presents a reasonable buying opportunity in 2025 for those with secure employment and long-term investment horizons.
Current market conditions favor buyers more than they have in years. Property prices remain significantly below their 2021 peaks, interest rates have fallen to multi-year lows, and selection remains good with inventory levels above historical averages. First-home buyers particularly benefit from these conditions, achieving record market share.
The expected 6-8% price growth in 2025 and continued gains in 2026 suggest buyers entering now could see meaningful capital appreciation. Combined with Auckland's fundamental strengths - population growth, economic importance, and constrained supply - the long-term investment case remains solid.
However, buyers must carefully assess their financial position. While mortgage rates have fallen, stress-testing at higher rates remains crucial given global economic uncertainties. The severe affordability challenges mean substantial deposits are still required, typically 20% or more for competitive rates.
Timing and location matter significantly. Outer suburbs offer better value and growth potential, while central areas may provide lifestyle benefits but weaker capital growth. Quality properties in good school zones with transport access remain the safest long-term investments.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Auckland's property market has turned the corner in 2025, with prices rising after a significant correction that saw values fall over 20% from their peak. The combination of lower interest rates, strong immigration, and improving buyer confidence suggests this recovery will continue through 2026.
While challenges remain, including affordability constraints and global economic risks, the fundamental drivers of Auckland's property market remain intact. For buyers with secure finances and realistic expectations, 2025 presents opportunities that haven't existed since before the pandemic boom. Yes, property prices are going up in Auckland.
Sources
- QV House Price Index
- Opes Partners - New Zealand Property Markets
- OneRoof House Price Report - February 2025
- Global Property Guide - New Zealand Market Analysis
- Auckland Council - Rating Valuations 2025
- NZ Herald - Auckland House Prices 2025 Forecast
- ANZ Property Focus Report
- RNZ - House Price Growth Predictions
- Interest.co.nz - Property Market News
- Team Diego - Auckland Property Trends 2025