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 is happening in Auckland’s real estate market? Are prices on the rise or decline? Is the city still a prime location for international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from industry professionals, buyers, and sellers across Auckland and beyond. Maybe you’re curious about these topics too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Auckland real estate market daily. That’s why we’ve crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Auckland’s property prices will stabilize following a period of rapid growth
Auckland's residential property prices are starting to stabilize after a period of rapid growth.
One reason for this change is the slowing rate of property price growth. Back in 2023 and 2024, the growth rate was expected to be between 5-7%, which is a noticeable slowdown compared to the previous years. This shift is giving potential buyers a bit of breathing room, making the market feel less frantic.
Another factor contributing to this stabilization is the increased housing supply. From 2018 to 2023, Auckland saw a boom in new housing, with 64,800 new homes built. This 11.9% increase in new homes outpaced the population growth of 5.4%, which is helping to balance out supply and demand. More homes mean more options for buyers, which can ease the pressure on prices.
Interest rates are also playing a part. As they rise, mortgages become more expensive, which tends to cool down demand. When borrowing costs go up, people think twice before jumping into the market, leading to more stable property prices. This is a common trend in real estate markets worldwide.
Consumer sentiment is shifting too. Surveys show that buyers are now more focused on affordability, indicating a cautious approach to purchasing. This change in mindset is crucial because it suggests that people are prioritizing financial stability over rushing into property investments.
These elements combined are creating a more balanced market in Auckland. The days of skyrocketing prices might be behind us, as the city adjusts to a new normal where stability takes center stage.
Sources: Precise Homes, Our Auckland, CoreLogic
2) North Shore properties will see slower price growth than other areas due to recent overdevelopment
The North Shore has seen a 45% rise in dwelling consents over 2022/2023, marking one of the highest growth rates in Auckland.
This rapid increase in housing supply can lead to an oversupply, which often results in slower price growth. In September 2024, the North Shore experienced a 9.5% decrease in residential property prices compared to the previous year, a decline that stands out when compared to other Auckland districts.
Overdevelopment can strain existing infrastructure, making potential buyers cautious about long-term implications. This caution can further slow price increases in the area. Demographic studies show that population growth in the North Shore isn't keeping up with the rapid increase in housing supply.
This mismatch can lead to oversupply issues, contributing to slower price growth. Economic reports highlight these potential oversupply issues, reinforcing the expectation of slower price increases in the North Shore compared to other areas.
Potential buyers might be wary of the long-term implications of overdevelopment, which can strain infrastructure and services. This wariness can contribute to slower price growth as buyers weigh their options carefully.
Sources: Statista, Auckland Council, Opes Partners
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.
3) Rental yields in high-density areas will stay stable with steady demand from young professionals
Rental yields in Auckland's high-density areas are expected to stay stable thanks to the steady demand from young professionals.
These young professionals are flocking to urban living, drawn by the proximity to job opportunities, public transport, and amenities. Auckland's city center is a magnet for them, offering everything they need within reach.
In the year leading up to March 2023, employment in Auckland's city center grew by 7.3%, outpacing the national growth rate of 2.5%. This boom in jobs is a key factor in why young professionals are choosing to live in the city.
Auckland's city center isn't just any employment hub; it's the largest in New Zealand, boasting an average of 157,500 jobs as of March 2023. Many of these jobs are in professional and financial services, which are particularly appealing to young professionals.
Surveys consistently show that young professionals prefer city living, which keeps the demand for rental properties high. This preference is a major reason why rental yields in these areas remain stable.
Sources: Auckland Council, Graystone IG, Statista
4) Auckland's central suburbs will see declining rental yields as property prices rise faster than rents
Property prices in Auckland's central suburbs have skyrocketed in recent years.
Take Herne Bay, for example, where the median value hit $3,161,400 in 2023, making it the priciest suburb around. This surge in property values is reshaping rental yields, as rents just can't keep up.
From 2017 to 2024, rents in Auckland climbed by only 22%, lagging behind the national average of 34%. Even with an 8% bump in 2023, rent hikes were still outpaced by property price growth. This mismatch is key to understanding why rental yields are dropping.
Looking back, the gap between property prices and rental income has only widened. After the Auckland Unitary Plan came into play, rents for three-bedroom homes were 26 to 33% lower six years later. This shows that while property values soared, rental income didn't follow suit.
Insider knowledge suggests that investors are feeling the pinch as rental yields shrink. With property prices outstripping rent increases, the return on investment isn't what it used to be.
For those eyeing a property purchase, it's crucial to consider how these dynamics might affect your investment. The trend of rising property prices and slower rent growth is expected to continue, impacting rental yields.
Sources: CoreLogic, Our Auckland, Prendos
5) Foreign investors will target Auckland’s high-end properties for their perceived stability
Foreign investors are eyeing Auckland's luxury properties as stable investments.
In 2023, only a small fraction, 5% of New Zealand's residential properties, were valued at $2 million or more, and most of these are in Auckland. This scarcity makes them a hot ticket for those seeking exclusive investments. Since the National Party's announcement in August 2023 to welcome foreign buyers back into the high-end market, interest from overseas has surged. Auckland, in particular, has caught the eye of buyers from the US, Australia, and Singapore, who enjoy certain buying privileges.
As we moved into 2024, there was a notable increase in luxury property listings in Auckland's upscale neighborhoods. Real estate agencies are buzzing with inquiries, especially from Australia and Singapore, and they anticipate growing interest from the US, UK, and China. Auckland's allure as a stable investment hub is bolstered by its economic resilience and diverse opportunities, often highlighted in international media.
For those considering a purchase, Auckland's high-end market offers not just a home but a piece of a city known for its stability and growth potential. The city's economic landscape is diverse, providing a cushion against global economic shifts. This makes Auckland's luxury properties not just a status symbol but a smart investment choice.
With its reputation for stability, Auckland is a magnet for foreign investors looking for secure and profitable ventures. The city's high-end real estate market is thriving, driven by a combination of scarcity and international interest. This trend is expected to continue, making Auckland a focal point for luxury property investments.
Sources: OneRoof, NZ Sotheby's Realty, CEOWorld
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6) Affordable housing projects will help keep price increases moderate in some Auckland areas
Affordable housing projects are crucial for keeping property prices in check in certain parts of Auckland.
The New Zealand government is putting its money where its mouth is, with $140 million earmarked for 1,500 new social housing units starting in July 2025. This move is expected to boost the supply of affordable homes, which should help balance out the demand and keep property prices from skyrocketing.
Looking back, between 2017 and 2024, Auckland's rents went up by 22%, while the national average was a 34% increase. This shows that Auckland's strategies, like allowing more housing capacity, have already made a difference. By continuing to build affordable housing, Auckland can keep prices more stable and make homes more accessible for everyone.
Experts like Gary Blick, Auckland Council's Chief Economist, say that allowing more housing density can lower development costs per home. This could lead to a more manageable rise in housing prices over time. Real estate analysts agree, predicting a moderate growth in property prices, around 5-7% in 2024, instead of a big jump.
Research shows that new affordable housing developments have helped keep rental prices steady. For example, rents for three-bedroom homes in Auckland were 26 to 33% lower than they might have been six years after the Auckland Unitary Plan was introduced. This proves that affordable housing can positively impact local markets, supporting the idea that these projects can help moderate price increases in the future.
So, if you're thinking about buying property in Auckland, these affordable housing projects might just be the key to a more stable market. They could make a real difference in keeping prices from going through the roof.
Sources: Our Auckland, Beehive, Our Auckland
7) Rental yields in Auckland's fringe suburbs will rise slightly as more people look for affordable options
The rental market in Auckland's fringe suburbs is on the rise as people search for more affordable living options.
Central Auckland has seen a 9.91% jump in average weekly rent by December 2023, making it tough for many to afford living there. This has pushed renters to look at places like Franklin and Rural Manukau, where rents have gone up by 6.57%, but are still more budget-friendly.
These fringe areas are becoming popular because of Auckland Council's efforts to increase housing capacity. Their upzoning initiatives have led to more new homes and better affordability, making these suburbs attractive to renters.
Media often talks about how much cheaper it is to live in these suburbs compared to central Auckland, which draws even more people. Property managers are noticing this trend too, with townhouses in these areas having shorter tenancies and quicker rent hikes.
All these factors suggest that rental yields in Auckland's fringe suburbs are set to grow as demand keeps climbing. The combination of affordability, new housing, and media attention is making these areas a hot spot for renters.
Sources: Barfoot & Thompson, Our Auckland, Opes Partners
8) Coastal areas will see rising rents due to their appeal as lifestyle destinations
Rental prices in coastal areas like Auckland have been rising due to their appeal as lifestyle destinations.
Take Devonport, for example. In 2024, the average weekly rent for a two-bedroom house there was $600, while in Wairau Park / Glenfield North, it was $488. This shows how much more people are willing to pay for that coastal vibe.
Suburbs like Takapuna and Devonport are hot spots. In 2024, Takapuna's average weekly rent for a two-bedroom house was $580, and for a three-bedroom, it was $730. These numbers highlight the ongoing demand for coastal living.
Real estate reports back this up. The Crockers property management report points out that coastal suburbs like East Coast Bays and Glenfield are seeing significant rental price increases. This trend is not just numbers; real estate agents are noticing more interest in these areas too.
People are drawn to the lifestyle these coastal areas offer, and it's not just about the view. The community vibe, access to beaches, and a more relaxed pace of life are big draws, pushing up demand and prices.
So, if you're thinking about buying property in these areas, be prepared for higher rental prices as more people seek that coastal lifestyle.
Sources: Crockers Property Management Report, Rents and Rentals in North Auckland
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.
9) Younger families moving to Auckland suburbs will affect school zones and local amenities
Auckland's property prices have skyrocketed, especially in central areas like Mt Albert, where homes now average over $1 million.
Because of this, many families are looking to the suburbs for more affordable options. Statistics New Zealand highlights a trend of young families moving to these areas, with a projected 21% increase in the population aged 5-19 by 2043, mostly in the suburbs.
Families are drawn to the suburbs for larger homes and a better quality of life. This shift is evident in the real estate market, where demand for suburban properties is on the rise.
Schools in these areas are feeling the impact. Campbells Bay School, for instance, is operating at 113% capacity, with about 100 new students enrolling each year.
This pattern is not unique to Campbells Bay. Other suburban schools are also seeing increased enrollments, which is reshaping school zones and local amenities.
As more families move to the suburbs, local communities are adapting to meet the needs of these new residents, impacting everything from school capacities to neighborhood facilities.
Sources: OneRoof, National Education Growth Plan 2030
10) Auckland townhouses will become more popular for their balance of affordability and space
In Auckland, townhouses are becoming a hot choice for homebuyers.
With skyrocketing housing prices, many people are finding standalone homes out of reach. Townhouses strike a perfect balance, offering more space than apartments but at a more affordable price. This makes them an attractive option for those who want a bit more room without breaking the bank.
Thanks to planning rules that encourage densification, townhouses now make up nearly 60% of all home consents in 2023 and 2024. The Auckland Unitary Plan has been a game-changer, rezoning residential land to boost housing capacity. This means more choices for urban dwellers who want to live closer to the city.
Demographic shifts are also playing a role. As households get smaller, townhouses become even more appealing. They offer just the right amount of space for those who find apartments too cramped but can't afford a standalone home. Real estate experts predict that townhouses will account for 40-43% of new consents in the coming years.
Location is another big draw. Many townhouses are popping up in areas with excellent transport links and amenities, making them a convenient choice for buyers. This accessibility adds to their charm, especially for those who want to cut down on commute times.
With all these factors in play, it's no wonder townhouses are gaining traction. They offer a sweet spot of affordability, space, and convenience, making them a smart choice for many Aucklanders.
Sources: Statista, Our Auckland, Infometrics
11) Demand for rental properties near educational institutions will rise as more international students arrive
International student numbers in Auckland are booming, especially in 2023 and 2024.
In 2023, New Zealand universities saw a surge with 31,345 international students enrolling, a 14% jump from the previous year. This upward trend didn't stop there; by 2024, enrollments in just two terms surpassed all of 2023. This influx is reshaping the rental market, particularly around universities.
The demand for student housing is skyrocketing. In the first eight months of 2023 alone, 59,306 international students enrolled in New Zealand's education sector, marking a 43% increase from the entire previous year. This surge is a clear indicator of the growing need for rental properties near educational institutions.
Auckland's housing shortage is adding fuel to the fire. With low supply and strong migration, the focus is shifting towards the living sector, especially build-to-rent models. This shortage is most acute around universities, where the influx of international students is driving up rental demand.
For those considering property investment, this trend offers a golden opportunity. The areas around universities are becoming hotspots, with rental properties in high demand due to the steady stream of international students. This demand is not just a temporary spike; it's a sustained trend that savvy investors are keen to capitalize on.
As more international students flock to Auckland, the rental market is set to remain competitive. The combination of a housing shortage and increasing student numbers means rental properties near universities are a smart investment. This is a trend that shows no signs of slowing down, making it an exciting time for property buyers.
Sources: ENZ, ENZ, Trimont, The PIE News, Beehive
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) New environmental rules will raise costs for property developers in Auckland
New environmental regulations in Auckland are making property development more expensive.
Developers are now dealing with stricter building codes, which means they have to pay more for compliance. For example, the fees for building consents have jumped, with both base fees and processing deposits seeing a noticeable increase. This is a big change from what developers were used to in the past.
Another cost that has gone up is for the Code Compliance Certificate (CCC). These certificates are crucial for any new building, and the fees depend on how much the project is worth. So, if you're working on a pricier project, expect to pay more for these approvals, which means developers need to plan their budgets carefully.
There's also a big push for sustainable construction, which is adding to the costs. While green buildings can save money in the long run, the upfront costs for materials and technologies are high. Developers are also paying more for environmental impact assessments, which are necessary to make sure projects meet the required standards.
Sources: Auckland Council’s Consenting and Property Information Fees and Charges, Cost of Sustainable Construction
13) Hibiscus Coast will see rising home demand as it gains a reputation for being family-friendly
The demand for homes in the Hibiscus Coast is on the rise as it becomes known for being family-friendly.
Since 2018, the Hibiscus and Bays area has seen a population increase of 9.6%, which means more people are choosing to move there. This naturally boosts the demand for housing as families look for a place to settle.
From 2018 to 2023, the number of occupied private dwellings went up by 9.4%, indicating that more homes are being built to accommodate this influx. Families are drawn to the area, likely because of its welcoming environment and amenities.
New family-oriented amenities and parks are popping up, and transportation links to Auckland city center have improved. These changes make commuting easier and enhance the quality of life, making the Hibiscus Coast even more attractive to families.
With these developments, the area is becoming a hotspot for families seeking a balanced lifestyle. The combination of better amenities and easier commutes is a big draw for those looking to buy a home.
As the Hibiscus Coast continues to grow, its reputation as a family-friendly area is likely to keep attracting more people. This trend is expected to further increase the demand for homes in the region.
Sources: Hibiscus Coast Census Highlights Growth, Opes Partners Auckland Property Markets
14) Large, older homes in Auckland will become less appealing due to high maintenance costs and energy inefficiency
Older homes in Auckland are becoming less attractive due to rising maintenance and energy costs.
In 2022, Kāinga Ora spent over $41 million on repairs in Central and East Auckland, showing just how pricey it is to keep these homes in shape. With handyman services costing between $50 and $90 per hour, and some tasks reaching $200, the expenses pile up fast, making these homes less appealing to budget-conscious buyers.
Energy bills are another concern, with electricity costs expected to rise by $10 a month starting in 2025. Older homes, often less energy-efficient, become even more costly to heat and cool, pushing buyers towards more modern options.
There's a growing trend towards energy-efficient homes, fueled by media and government incentives promoting sustainable living. Buyers are increasingly drawn to homes that are not only cheaper to maintain but also kinder to the environment.
Real estate trends indicate that older homes are lingering longer on the market, as buyers shift their interest to smaller, modern homes. These newer homes are designed to be more energy-efficient and require less upkeep, appealing to today's eco-conscious and cost-savvy buyers.
Studies highlight that older homes have a higher carbon footprint due to outdated insulation and inefficient appliances. This environmental impact is another reason why large, older homes in Auckland are losing their charm.
Sources: Kāinga Ora, Handyman Group, Scoop NZ
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of New Zealand. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Multi-generational living will boost demand for larger homes in Auckland
Auckland's property prices have soared, making single-family homes a tough buy for many.
To cope, families are increasingly opting for multi-generational living, where everyone chips in to make homeownership more affordable. This isn't just about money; it's also about Auckland's rich cultural tapestry. Many Pasifika and Asian families, for instance, have a long-standing tradition of living with extended family, which naturally boosts the demand for larger homes.
Another factor is Auckland's aging population. As more elderly family members need care, multi-generational homes offer a practical solution. Families can stay close while providing the necessary support, making these larger homes a necessity rather than a luxury.
In these households, you'll often find more people than in the average home, which means more space is essential. This trend is reshaping the housing market, with a noticeable shift towards properties that can accommodate these larger family units.
Interestingly, this shift is also influenced by Auckland's diverse communities. The cultural preference for living with extended family is strong, especially among ethnic groups, which further fuels the demand for bigger homes. It's not just about having more room; it's about maintaining those close-knit family ties that are so valued in these cultures.
So, if you're considering buying property in Auckland, keep an eye on this trend. The demand for larger homes is likely to grow, driven by both financial necessity and cultural preferences. Multi-generational living is here to stay, and it's shaping the future of Auckland's housing market.
Sources: Renovating Family Homes for Multi-Generational Living, Meeting the housing needs of multi-generational households, Auckland upzoning sparks more homes and improved affordability, Multigenerational living: Everything you need to know, Flourishing ethnic diversity; thriving New Zealand
16) Auckland's zoning law changes will promote more high-density developments in specific areas
Auckland is buzzing with new housing developments thanks to recent changes in zoning laws.
With the Auckland Unitary Plan in action, the city has seen a boom in building consents for multi-unit dwellings. This plan has opened up residential areas for more homes, leading to around 22,000 new homes being consented between 2016 and 2021. It's a big leap from what we saw in previous years.
The government is also pushing for higher density living with initiatives like the Medium Density Residential Standards (MDRS). These standards make it easier for property owners to build up to three homes of three storeys on their land. Plus, the National Policy Statement on Urban Development (NPS-UD) is nudging Auckland Council to allow buildings of six storeys or more in key spots.
In 2023, the housing scene in Auckland shifted significantly, with 62% of new dwellings being townhouses, flats, and units. This move towards medium and high-density housing is not just about accommodating more people; it's also a step towards cutting down on greenhouse gas emissions.
These changes are reshaping Auckland's landscape, making it a more vibrant and sustainable place to live. If you're considering buying property here, it's worth noting how these developments could impact your investment.
Sources: Our Auckland, Crockers, Knowledge 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.