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
What will happen in Auckland’s real estate market? Will prices go up or down? Is Auckland still a hotspot for foreign investors? How is New Zealand’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, property developers, and clients who buy properties in Auckland, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
How this content was created 🔎📝
1) Rental prices in Auckland's coastal areas will increase as remote workers look for scenic places to live
Rental prices in Auckland's coastal areas are climbing as more people seek scenic living spaces.
In places like Takapuna/Milford, the average weekly rent hit $851 in September 2024, which is a 15% jump from last year. East Coast Bays isn't far behind, with rents rising 4% to $773. Ponsonby, known for its vibrant lifestyle, saw a 5% increase, with rents now at $1,028.
Why the surge? It's all about the view. More folks want to live where they can enjoy the beauty of the coast. Real estate agents are seeing more property owners looking to rent out their homes, but the demand is still outpacing supply. This is especially true as more Aucklanders are working from home.
According to a study by Verian for InternetNZ, 52% of New Zealanders who can work remotely want to do it more often. This shift is pushing people to find homes that offer both a great view and a peaceful setting. The pandemic has nudged many to rethink their priorities, with a focus on achieving a better work-life balance.
With remote work becoming the norm, living in a beautiful, tranquil place is more appealing than ever. Coastal areas are perfect for this, offering a serene escape from the hustle and bustle of city life.
Sources: Barfoot & Thompson, HRM Asia, Digital Summit
2) Inner-city rental yields will drop as people relocate to the suburbs for more space
In Auckland, more people are choosing suburban life over the hustle and bustle of the city.
This shift is largely driven by the desire for larger homes and dedicated office spaces, especially as remote work becomes more common. As a result, inner-city rental demand is dropping, leading to lower occupancy rates in these areas. With fewer tenants interested in city living, rental yields in the inner city are starting to stagnate or even decline.
Suburban areas, on the other hand, are thriving. Some suburbs, like Freemans Bay, are now offering better rental yields than central Auckland. This trend is supported by real estate market reports and feedback from agents, who note a clear shift in buyer interest from urban to suburban properties.
Families and professionals are flocking to the suburbs for improved living conditions, which is evident in the increased inquiries and sales in these areas. The enhancements in transportation and infrastructure have made suburban living more accessible, further encouraging this trend.
For those considering a property purchase, it's worth noting that suburban areas are becoming more attractive due to these changes. The combination of more space, better yields, and improved accessibility makes the suburbs a compelling choice for many.
Sources: Opes Partners, Auckland Council, Barfoot & Thompson, Realestate.com.au
We did some research and made this infographic to help you quickly compare rental yields of the major cities in New Zealand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Luxury property ownership in Auckland will change due to shifts in foreign investment policies
Auckland's foreign investment policies have seen major changes in 2023 and 2024.
The reform of the Overseas Investment Act 2005 now makes it easier for foreign investors to enter New Zealand's market. This shift adopts a risk-based approach, allowing investments unless they pose a threat to national interests. One notable change is the introduction of a 15% tax on properties over $2 million sold to foreign buyers. While this might make some investors pause, it's not expected to stop them entirely.
Luxury property prices in Auckland could see a shift due to this policy, potentially leading to increased demand and higher prices. Since the announcement, there's been a noticeable uptick in interest from international buyers, especially from the US, Hong Kong, Singapore, and the UAE. This surge in enquiries suggests that Auckland's luxury market remains attractive despite the new tax.
For those considering buying property in the country, it's worth noting that these changes might alter the landscape of luxury property ownership. The influx of foreign interest could mean more competition and possibly higher prices. However, the appeal of New Zealand's stable economy and beautiful landscapes continues to draw investors.
Insider knowledge suggests that the luxury market in Auckland is resilient, with a strong foundation that can withstand policy changes. The new tax might even be seen as a way to ensure that only serious investors enter the market, potentially leading to a more stable investment environment.
As these policies unfold, potential buyers should keep an eye on how these changes impact the market dynamics. The combination of increased foreign interest and policy shifts could create unique opportunities for those looking to invest in Auckland's luxury properties.
Sources: MinterEllison, OneRoof, NZ Sotheby's Realty
4) Auckland’s home prices will stabilize as the market adapts to new economic conditions
Auckland's property market is finding its footing as residential property prices stabilize.
Interest rates have been a rollercoaster, but by July 2024, they started to ease, making it easier for buyers to secure mortgages. This shift has slowed the rapid price hikes we saw before, giving the market a chance to breathe.
On the supply side, even with a dip in new home completions mid-2024, Auckland's housing supply remains robust. More homes mean less pressure on prices, helping to keep them steady.
Government tweaks, like changes to the "bright-line test," have cooled speculative buying. This makes it less tempting for investors to flip properties, ensuring more homes for actual residents.
Population growth in Auckland is steady, so the current housing supply can meet demand. This balance is key to preventing price spikes due to housing shortages.
Sources: Massey University, Interest.co.nz, Precise Homes
5) Apartment prices in central Auckland will drop as remote work lessens the need for city-center living
Remote work has transformed how people live in Auckland.
Back in 2023, 18.2% of employed adults in Auckland were mostly working from home, a big leap from 8.7% in 2018. This shift means fewer folks feel the need to live in the city center. Instead, they're eyeing the suburbs or even rural spots for more space and a better lifestyle.
With more people working from home, the demand for central Auckland apartments is dipping. People are choosing the peace and roominess of suburban life over the hustle and bustle of the city. This change is making city-center living less appealing.
The rental market in central Auckland is feeling this shift too. As of June 2024, the gross rental yield for one-bedroom apartments was 5.84%. This could hint at a drop in demand, as fewer people need to be near their offices. Companies are also cutting down on office space, which supports the remote work trend.
For those considering buying property, this means central Auckland might not be the hotspot it once was. The appeal of city-center living is waning as more people embrace remote work and the perks of living further out.
So, if you're thinking about buying, it might be worth looking beyond the city center. Suburban and rural areas are becoming more attractive as people seek a better quality of life away from the urban core.
Sources: HCAMag, Opes Partners, RNZ
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6) Property prices in Auckland's outer suburbs will rise steadily as families look for bigger homes
Auckland's population is booming, and it's reshaping the housing market.
With more people moving in, the demand for housing is skyrocketing, especially in areas offering more space. Families are now eyeing the outer suburbs, where they can find larger homes and better living conditions. This shift is partly due to the rise of remote work, which has made home offices a necessity. More people are working from home, and they want comfortable spaces to do it.
Central Auckland's housing prices are through the roof, with the median sale price exceeding a million dollars. This has pushed many buyers to look for more affordable options in the suburbs. Improved infrastructure and transport links have made suburban living more convenient, adding to its appeal.
Government policies are also playing a role. New rules are encouraging the development of smaller homes and sprawling cities, which means more housing opportunities without losing the charm of existing suburbs. This makes the outer suburbs even more attractive to families seeking larger homes.
Historical data backs this up. Suburban areas have seen consistent price increases over the years. For instance, Pinehill has had the fastest-growing house prices in Auckland recently. This trend is expected to continue as more families move to the suburbs for better living conditions.
In short, if you're considering buying property in Auckland, the outer suburbs are where the action is. Families are flocking there for space, affordability, and a better lifestyle. The outer suburbs of Auckland will see a steady increase in property prices as families seek larger homes.
Sources: Opes Partners, Wikipedia, Interest.co.nz, NZ Herald
7) West Auckland property prices will rise as eco-friendly developments become more popular
In West Auckland, eco-friendly living is becoming a hot trend.
People are increasingly drawn to sustainable homes, especially since 2023 and 2024 saw a surge in environmental awareness. This shift is largely due to the benefits of living in eco-friendly spaces, which are not only good for the planet but also for personal well-being.
The New Zealand government has been a major player in this movement, offering incentives for building net-zero homes. These homes are designed to be super energy-efficient, making them attractive to both developers and buyers. The government's support has made it easier for developers to prioritize sustainable projects.
In West Auckland, while exact figures might be elusive, the trend is clear. Local councils are investing in green infrastructure, such as parks and renewable energy projects. These initiatives not only enhance the quality of life but also boost property values in the area.
As eco-friendly developments gain traction, property prices in West Auckland are expected to rise. This is because sustainable living is not just a trend; it's becoming a lifestyle choice for many.
With the combination of government incentives and local council investments, West Auckland is poised for a property boom. Buyers looking for homes in this area can expect to see more eco-friendly options on the market.
Sources: Knowledge Auckland, Open Expert
8) Rental yields in Auckland's suburbs will rise as demand for family homes grows
Auckland's suburban housing market is on the rise, with areas like Albany, Long Bay, and Northcross gaining popularity.
These suburbs, along with Manukau, Mount Roskill, Onehunga, Panmure, and Papatoetoe, are becoming hotspots due to their affordability and rich amenities. Families are flocking to these areas, driving up demand for homes and pushing house prices higher.
In places like Papakura and Upper Harbour, population growth has surged over 20%, showing a clear shift from urban to suburban living. This trend reflects a strong preference for the lifestyle these suburbs offer, with more families seeking rental properties, which in turn boosts rental occupancy rates.
Suburban neighborhoods are not just growing in population; they're also seeing significant improvements in infrastructure and amenities. Take Panmure, for example, which is being revitalized through the Auckland Manukau Eastern Transport Initiative, making it even more appealing for families.
Government policies are also playing a role, promoting suburban development and likely leading to increased rental yields as demand continues to rise. These changes are making suburban areas more attractive for potential property buyers.
With these developments, suburban Auckland is becoming a prime spot for property investment, offering a promising outlook for rental yields as more families move in.
We have made this infographic to give you a quick and clear snapshot of the property market in New Zealand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Demand for large family homes in Auckland will drop as smaller households become more common
In Auckland, household sizes are shrinking.
Over the past few years, the average number of people living in a home has been on a downward trend, moving from 2.67 in 2021 to a projected 2.63 by 2031. This means smaller households are becoming the norm. It's not just a numbers game; it's about how people are choosing to live.
There's a noticeable uptick in single-person and couple-only households. For example, the number of one-person homes is expected to rise by 149,000, largely because of an ageing population. Meanwhile, childless couples are becoming the most common family type, reinforcing the shift towards smaller living arrangements.
Urbanization is also influencing this trend. From 2018 to 2023, there's been a significant increase in the number of dwellings, showing a preference for more compact living spaces. This is evident in the growing popularity of apartments and townhouses, which are ideal for those seeking low-maintenance homes.
These changes are reshaping the housing market. As more people opt for smaller, more manageable homes, the demand for large family houses is likely to decrease. This shift is not just about space but also about lifestyle choices, with many preferring the convenience and simplicity of smaller homes.
For potential buyers, this means considering the evolving landscape of Auckland's housing market. With the rise of smaller households, investing in compact properties could be a smart move. It's about adapting to the changing needs and preferences of the population.
Sources: Auckland Council, NZ Herald, Infometrics
10) Luxury property investments in East Auckland will grow as wealthy buyers look for coastal living
East Auckland is becoming a prime spot for luxury property investments.
In areas like Orakei and Remuera, over $80 million worth of luxury properties are hitting the market, showing a strong interest in high-end real estate. These suburbs are known for their stunning views and proximity to the coast, making them highly desirable for those seeking a lavish lifestyle.
The allure of coastal living is undeniable, and it's driving up demand for properties in East Auckland. Affluent buyers are snapping up homes with high capital values, attracted by the scenic beauty and the lifestyle perks that come with living by the sea. This trend is particularly strong in the luxury market, where record prices are becoming the norm.
East Auckland's Ōrākei Local Board Area stands out with the highest median household income in New Zealand. This concentration of wealth means more people are looking to invest in luxury homes, further boosting the area's appeal. Real estate agents are noticing a surge in interest from high-end buyers, reinforcing East Auckland's status as a top choice for luxury living.
For those considering a move, East Auckland offers not just beautiful homes but also a vibrant community and easy access to the city. The combination of natural beauty and urban convenience makes it a unique place to live. Buyers are increasingly drawn to the area's blend of coastal charm and modern amenities.
As more affluent individuals seek out the coastal lifestyle, East Auckland is poised to see continued growth in luxury property investments. The area's reputation for exclusivity and quality living is only set to strengthen. Investors are keen to capitalize on this trend, making it a hotbed for future developments.
Sources: CEOWorld, NZ Herald, Diego.nz
12) Demand for single-level homes and retirement-friendly communities in Auckland will grow as the population ages
Auckland's aging population is rapidly increasing, with a notable rise in those aged 65 and over.
By 2030, New Zealand is expected to have nearly 1 million seniors, and Auckland will host the largest share. This shift is reshaping the housing market, as older adults often seek homes that match their lifestyle. Single-level homes are particularly popular because they are easier to navigate and maintain, especially for those with mobility challenges.
Real estate trends clearly show a growing demand for these types of homes. As people live longer, thanks to better healthcare and living conditions, the need for suitable housing options becomes more pressing. Retirement-friendly communities are also gaining traction, with companies like Ryman Healthcare leading the charge in Auckland.
These communities offer a range of living options tailored to older adults, ensuring they have access to essential services and amenities. Ryman Healthcare is actively developing new retirement villages, creating environments that support the needs of seniors. This trend is not just about housing; it's about building a community where older adults can thrive.
In Auckland, the focus is on creating age-friendly environments that cater to the growing senior population. Retirement villages are designed to provide a supportive atmosphere, making it easier for seniors to enjoy their golden years. This approach is becoming increasingly important as the population ages.
Sources: HUD, Planning.org.nz, Ryman Healthcare, Expedite Projects, Auckland Council
13) Demand for city-center apartments will decrease as more young professionals opt for suburban living
Young professionals are increasingly choosing suburban living over city centers.
In Auckland, the high cost of city-center properties has made urban living less appealing. This has led to a significant drop in the apartment market, with an 83% decrease in pre-sales over the past six years. The demand for city-center apartments is clearly dwindling, as young professionals look for more affordable options.
Remote work is another game-changer. With over 70% of Kiwis able to work from home at least part-time, the need to live close to the office has diminished. This flexibility allows young professionals to seek out larger living spaces in the suburbs, where they can comfortably balance work and leisure.
Public transport improvements have made suburban living even more attractive. Suburbs like East Tamaki and Mt Wellington now have better connections to the city center, making commuting easier when needed. This connectivity is a big plus for those who still need to pop into the city occasionally.
Suburban areas are also upping their game with new amenities and lifestyle facilities. These developments offer a better quality of life, with more space and access to everything from parks to shopping centers. It's no wonder young professionals are drawn to these areas.
As these trends continue, the demand for city-center apartments is likely to keep falling. Young professionals are finding that suburban living offers the space, affordability, and lifestyle they crave, making it a compelling choice for their next home.
Sources: NZ Herald, The Rent Shop, MPA Mag
14) Demand for larger homes with flexible layouts in Auckland will grow as multi-generational living becomes more popular
The trend of multi-generational living is gaining traction in Auckland, leading to a higher demand for larger homes with flexible layouts.
In Auckland, more families are choosing to live together under one roof, driven by both economic pressures and social benefits. This shift is evident in the rise of medium-density housing, which often features spacious homes designed for multiple generations. These homes are not just about size; they offer adaptable spaces that cater to the evolving needs of families.
Since 2016, property sales data has shown a marked increase in the purchase of larger homes. This trend is partly due to changes in Auckland's planning rules, which now support greater housing density and variety. These changes have made it easier for families to find homes that suit their diverse needs, including flexible living spaces that can adapt to different family dynamics.
Surveys reveal that many Aucklanders prefer homes that are both functional and adaptable. This preference is particularly strong among the aging population, with more people over 65 choosing to live with family members. As a result, there is a growing demand for homes that can comfortably accommodate everyone, offering both space and flexibility.
For those considering buying property in Auckland, it's worth noting that the market is increasingly catering to these needs. Homes with flexible layouts are becoming more common, reflecting the city's evolving demographic landscape. This trend is not just about accommodating more people; it's about creating spaces that can easily adjust to daily life and changing family dynamics.
Sources: Auckland Council Study, Urban Growth Agenda, RentCafe Report, Health and Independence Report 2023
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.
17) Suburban property values in Auckland will be affected as new zoning rules promote higher-density developments
Auckland's new zoning rules, known as the Medium Density Residential Standards (MDRS), are reshaping the city's property landscape.
These regulations now allow property owners to build up to three homes of three storeys on their land without needing special permission. This change is all about encouraging higher-density developments, meaning more homes can fit into the same space, making better use of the land.
In Auckland, there's been a noticeable uptick in building permits for multi-unit homes like apartments and townhouses. By the end of 2022, there was a 24% increase in consents for these types of homes compared to the previous year. This surge is a direct response to the new zoning laws, making it easier and more appealing for developers to dive into higher-density projects.
Research from the University of Auckland shows that these upzoning efforts have already led to the consent of around 22,000 new homes between 2016 and 2021. This boost in housing supply is helping to improve affordability and positively impacting property values.
By allowing more homes to be built, the cost per dwelling decreases, making it more affordable for buyers. This can potentially increase the value of properties in these newly developed areas, as more people are drawn to the improved affordability and availability.
New zoning regulations in Auckland will encourage higher-density developments, impacting suburban property values.
Sources: Property NZ, NBR, Our Auckland
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.