Authored by the expert who managed and guided the team behind the New Zealand Property Pack
Everything you need to know before buying real estate is included in our New Zealand Property Pack
New Zealand's property market is experiencing a stabilization phase after several years of volatility.
As of September 2025, the national average house price sits at approximately NZD 909,671, showing minimal change from the previous year. Regional variations remain significant, with Auckland and Wellington experiencing declines while some regional areas show moderate growth. Interest rates continue to impact buyer sentiment and affordability, though transaction volumes are gradually recovering from their 2023 lows.
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.
New Zealand's property market shows mixed signals with national prices remaining flat while major cities experience corrections and regional areas demonstrate varied performance.
High interest rates and reduced migration are key factors constraining growth, though supply improvements and government policies may provide stability in the coming year.
| Market Indicator | Current Status (Sept 2025) | 12-Month Forecast |
|---|---|---|
| National Average Price | NZD 909,671 (-0.1% to -0.5% YoY) | Flat to slight decline |
| Auckland Median | NZD 990,000 (-3.4% YoY) | -1% to flat growth |
| Wellington Median | NZD 760,000 (-4.4% YoY) | -2% to flat growth |
| Mortgage Rates | 6.1% - 7.0% | Expected to stabilize |
| Sales Volumes | +28% from 2023 trough | Gradual recovery continues |
| Building Consents | 14,295 new dwellings | Steady supply pipeline |
What's the current average house price across New Zealand, and how has it changed compared to the same time last year?
The current average house price across New Zealand stands at approximately NZD 909,671 as of September 2025.
This represents a minimal change from the same period last year, with the national market showing a modest decline of between 0.1% and 0.5% annually. This stability masks significant regional variations, with major cities experiencing more pronounced corrections while some regional areas continue to show growth.
The flat national performance reflects a market in transition, moving away from the rapid price increases seen during the pandemic years toward a more balanced state. This stabilization comes after New Zealand property values peaked in late 2021 and have since undergone a gradual correction.
Major urban centers have led the decline, with Auckland down 3.4% and Wellington falling 4.4% year-on-year. However, some regional markets have bucked this trend, with areas like the West Coast and Southland recording increases of up to 35% annually.
It's something we develop in our New Zealand property pack.
How do price trends differ between Auckland, Wellington, Christchurch, and regional towns, and what percentage growth or decline is expected in each over the next 12 months?
| Region | Current Median Price | 12-Month YoY Change | 12-Month Forecast |
|---|---|---|---|
| Auckland | NZD 990,000 | -3.4% | -1% to flat |
| Wellington | NZD 760,000 | -4.4% | -2% to flat |
| Christchurch | NZD 775,030 | ~0% | 0.5% to 1.5% growth |
| Queenstown | Not specified | +2.4% | 1% to 3% growth |
| Regional Towns (High-Growth Areas) | Varies | Up to +35% | 1% to 5% growth |
| West Coast/Southland | Not specified | +2% to +35% | Continued moderate growth |
What is the current mortgage interest rate range, and how does a 1% increase or decrease impact the average mortgage repayment on a $600,000 loan?
Current mortgage interest rates in New Zealand range between 6.1% and 7.0% for floating and variable rate loans as of September 2025.
For a standard NZD 600,000 loan over 30 years, the monthly repayment calculations demonstrate significant sensitivity to rate changes. At the current average rate of 6.5%, monthly repayments amount to approximately NZD 3,792.
A 1% increase in interest rates to 7.5% would push monthly repayments to about NZD 4,200, representing an additional NZD 408 per month or nearly NZD 4,900 annually. Conversely, a 1% decrease to 5.5% would reduce monthly payments to approximately NZD 3,406, saving NZD 386 monthly or about NZD 4,600 per year.
These rate impacts translate to roughly NZD 380-420 monthly payment changes for every 1% rate movement on a standard loan. This sensitivity explains why interest rate forecasts significantly influence buyer behavior and market activity levels in New Zealand's property market.
How have housing sales volumes changed month-to-month and year-to-year, and what do transaction numbers suggest about buyer confidence?
Housing sales volumes across New Zealand have shown a gradual recovery from their recent lows, though they remain well below historical peaks.
Nationwide sales volumes are currently up 28% from the May 2023 trough, indicating a steady improvement in market activity. Auckland specifically recorded 23,506 home sales annually, contributing significantly to this recovery trend.
However, current sales volumes remain approximately 35% below their 2021 peak levels, suggesting that while buyer confidence is recovering, it has not returned to the enthusiasm seen during the pandemic boom years. This gap indicates buyers are approaching the market with greater caution and selectivity.
Month-to-month trends show volumes climbing gradually but lacking the momentum characteristic of previous market booms. Buyers appear to be focusing on affordability and safe investment bets rather than speculative purchases, reflecting a more mature and risk-aware approach to property acquisition.
Transaction numbers suggest moderate buyer confidence that is steadily improving but remains tempered by macroeconomic uncertainty and higher borrowing costs.
What's the current rental yield in major cities versus smaller towns, and how does it compare to the long-term average?
Rental yields across New Zealand vary significantly between major cities and regional towns, with smaller centers generally offering superior returns for property investors.
Major cities currently deliver relatively modest yields, with Auckland achieving approximately 3% to 3.5%, Wellington around 3.6%, and Christchurch performing slightly better at about 4%. These yields are below their long-term historical averages, reflecting the impact of high property prices relative to rental income in urban centers.
Regional towns and smaller centers offer considerably more attractive yields, typically ranging from 4% to 6% or higher. Areas like Invercargill and West Coast towns can achieve yields exceeding 6%, driven by lower property purchase prices combined with reasonable rental demand.
The yield differential between cities and regions has widened in recent years, as urban property prices have risen faster than rents, while regional areas have maintained better price-to-rent ratios. This disparity makes regional property investment increasingly attractive for yield-focused investors.
Current yields in major cities sit below long-term averages, suggesting either rental growth opportunities or potential for property price corrections to restore historical yield relationships.
How many new building consents were issued in the past year, and what does the pipeline of housing supply look like for the next two years?
New Zealand issued 14,295 new dwelling consents nationwide in the past year, representing a significant 35% decline from the 2022 peak but remaining relatively stable compared to the previous 12-month period.
The current consent levels indicate a moderation in new construction activity from the exceptionally high levels reached during the pandemic building boom. This decline reflects both reduced demand due to higher interest rates and increased construction costs impacting development feasibility.
Looking ahead over the next two years, the housing supply pipeline remains significant though below previous boom levels. The existing backlog of consented projects ensures a steady flow of new supply entering the market, providing some balance to housing availability without creating major oversupply concerns.
The pipeline suggests new supply will continue at levels sufficient to meet underlying population growth and replacement demand, but not at rates that would flood the market or cause dramatic price corrections. This balanced supply outlook supports market stability rather than dramatic swings in either direction.
It's something we develop in our New Zealand property pack.
Don't lose money on your property in New Zealand
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What is the current vacancy rate in rental properties across regions, and what does it signal for landlords and tenants?
Rental property vacancy rates across New Zealand vary considerably by region, creating different market dynamics for landlords and tenants depending on location.
Auckland and Wellington currently experience relatively high rental vacancy rates above 3%, indicating increased choice for tenants and more competitive rental conditions. These higher vacancy rates suggest oversupply in the rental market relative to demand, typically resulting in slower rental growth or even rental decreases in some areas.
Christchurch and growth regions maintain tighter rental markets with vacancy rates below 2%, creating conditions that favor landlords through higher rents and faster tenant placement. These lower vacancy rates indicate strong rental demand relative to available supply.
For tenants, higher vacancy rates signal better negotiating positions, more choice in rental properties, and potentially more favorable rental terms. Lower vacancy rates indicate competitive tenant environments with less negotiating power and faster property lease-up times.
For landlords, the regional variation means investment strategies should consider local vacancy trends, with tight markets offering better rental growth prospects and higher occupancy rates, while loose markets may require more competitive pricing and property management approaches.
How do net migration figures—both inbound and outbound—affect housing demand, and what is the projected population growth in the next five years?
Net migration figures significantly impact New Zealand's housing demand, with recent trends showing reduced inbound migration particularly affecting major urban centers like Auckland.
Current migration patterns demonstrate declining net inward migration, which has reduced immediate housing demand pressure in the short term. Auckland has been particularly affected by this trend, contributing to its property price corrections and increased rental vacancy rates.
Despite recent migration declines, Treasury projections anticipate increased migration and population growth returning over the medium term. This demographic shift is expected to support housing demand as migration flows normalize and economic conditions improve.
Projected population growth over the next five years is estimated at 4% to 7% nationally, with the highest increases expected in Auckland and select regional centers. This growth rate will require approximately 30,000 to 50,000 additional dwellings to maintain current housing supply ratios.
The population growth distribution will likely concentrate in economic centers, maintaining pressure on housing in Auckland, Wellington, and growth regions while potentially stabilizing demand in smaller centers. This demographic trend supports medium-term housing demand despite current migration softness.
How many distressed property sales or mortgagee sales are being recorded, and what percentage increase or decrease is forecasted?
Distressed property sales and mortgagee sales in New Zealand remain at relatively low levels as of September 2025, though some regional variation exists.
Current distressed sales activity is generally low across most regions, but shows signs of increase in economically affected areas, particularly Wellington where public sector job cuts have impacted local employment. However, there is no indication of a major surge in forced sales at this time.
The increase in distressed sales remains modest and concentrated in specific areas rather than representing a nationwide trend. Economic pressures from higher interest rates and employment uncertainties could potentially increase these numbers over the next 12 months if rates rise further or unemployment increases.
Forecasts suggest a mild increase in distressed sales over the coming year, but not a wave or crisis-level situation. The increase is expected to be manageable and localized rather than systematic across the entire property market.
This relatively contained distressed sales environment reflects the overall stability of the New Zealand property market despite recent price corrections and economic headwinds.
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.
How does affordability compare now versus five years ago, in terms of house price-to-income ratios and mortgage serviceability?
Property affordability in New Zealand has shown mixed changes over the past five years, with some improvement from pandemic peaks but ongoing challenges compared to historical norms.
House price-to-income ratios have improved slightly from their 2021 peak levels but remain elevated by historical standards. Auckland currently maintains a ratio around 8 times median income, Wellington sits near 7 times, while Christchurch has improved to closer to 6 times median income.
These ratios represent some improvement from the extreme levels reached during the pandemic property boom, when Auckland ratios exceeded 9 times and Wellington approached 8 times median income. The corrections in these major cities have provided modest affordability relief.
Mortgage serviceability has actually tightened significantly despite price corrections, due to the substantial increase in interest rates from historic lows. While property prices have fallen, higher borrowing costs have offset much of the affordability gain for new buyers.
The combination of slightly lower prices but much higher interest rates means that monthly mortgage payments for new buyers remain elevated compared to five years ago, particularly affecting first-home buyers and those with limited deposits.
What role are government policies, taxes, or subsidies expected to play in the property market over the next 12 to 24 months?
Government policies are expected to play a supportive but incremental role in New Zealand's property market over the next 12 to 24 months, focusing on supply-side improvements rather than major market interventions.
Recent government initiatives concentrate on freeing up land for development, streamlining consent processes, and providing targeted support for first-home buyers. These policies aim to increase housing supply and improve access for new buyers rather than dramatically altering market dynamics.
First-home buyer support programs and targeted subsidies will continue to provide assistance for qualifying buyers, helping to maintain some level of market activity among new entrants. These programs help offset some of the affordability challenges created by higher interest rates.
No significant tax overhauls or major market interventions are expected, suggesting policy impacts will be gradual and supportive rather than transformational. The focus remains on addressing supply constraints and supporting sustainable market conditions.
Incremental housing reforms and development facilitation are likely to provide steady but modest positive influences on market supply and buyer access, contributing to market stability rather than dramatic changes in price trends.
It's something we develop in our New Zealand property pack.
How are international economic factors—such as global interest rates, commodity exports, or foreign investment flows—likely to influence New Zealand's property market outlook?
International economic factors significantly influence New Zealand's property market outlook, with global interest rates, commodity exports, and foreign investment flows being key drivers of domestic market conditions.
Global interest rate movements directly impact New Zealand's monetary policy and borrowing costs, with rising international rates generally leading to tighter domestic lending conditions. Current global rate uncertainty continues to create volatility in New Zealand's property finance markets.
New Zealand's commodity export performance, particularly in dairy, meat, and timber, strongly affects national income and property market sentiment. Strong commodity prices support rural property values and overall economic confidence, while weak export performance can dampen market activity.
Foreign investment flows, though regulated, continue to influence market dynamics particularly in premium segments and development projects. Changes in global capital flows and investment sentiment toward New Zealand assets can affect property demand and pricing in key markets.
Rising global rates and tighter international funding conditions could continue to restrain New Zealand property price growth by maintaining elevated borrowing costs and reducing speculative demand. Conversely, a rebound in commodity exports or renewed foreign buyer interest would provide market support.
The interconnected nature of these factors means New Zealand's property market remains sensitive to global economic conditions, making international developments important considerations for property investors and buyers.
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.
New Zealand's property market in September 2025 presents a landscape of stabilization and regional variation.
While major cities continue to experience corrections, regional areas show resilience, and the overall market appears to be finding a new equilibrium after the volatile pandemic years.
Sources
- OneRoof House Price Report August 2025
- RNZ - Average House Prices Fall Except in the Deep South
- QV House Price Index July 2025
- Global Property Guide - New Zealand Price History
- Opes Partners - Auckland Property Market
- Auckland Economic Update August 2025
- OneRoof House Price Report June 2025
- Area Specialist - Current Trends in New Zealand Property Market