According to Cotality NZ’s latest Pain & Gain Report, 89.4% of properties resold for more than their original purchase price in the June 2025 quarter, down from 90.7% in the March quarter and marking the lowest rate since mid-2014.
The national median resale gain was $279,000, significantly below the late-2021 peak of $440,000, but still higher than pre-2020 levels. For those experiencing losses, the median figure stood at $52,500.
Cotality NZ Chief Property Economist Kelvin Davidson said that while the market has softened, most sellers are still coming out ahead.
“Nearly nine out of 10 resellers are still making a gross profit, which in many cases is a substantial amount of money,” Mr Davidson said.
“However, the results reflect the fact that values are still well down from the peak in many areas and buyers with finance approved continue to hold most of the pricing power.”
The length of time a property is held before resale has emerged as a critical factor in determining profitability.
Properties sold at a gain in the June quarter had a median hold period of 9.4 years – the longest in Cotality’s data since the mid-1990s.
In contrast, properties sold at a loss had been held for just 3.5 years on average.
“That’s particularly relevant now, because 3.5 years ago was effectively the market peak when prices were very high and interest rates were already climbing,” Mr Davidson said.
“For some of the buyers at that time, any unforeseen change in circumstances since, such as a job loss, could have resulted in a forced sale at a lower price than expected.”
Standalone houses continue to outperform apartments, with only 9.8% of houses resold at a loss compared to 33.8% of apartments.
However, this disparity doesn’t indicate a collapse in the apartment sector, as apartments historically experience less price growth over time.
Among the main centres, Christchurch demonstrated the greatest resilience with just 4.9% of resales made at a loss, well below the national average.
Auckland recorded the highest proportion of loss-making sales at 15.9%, followed by Tauranga at 13.2% and Wellington at 11.9%.
Interestingly, Tauranga recorded the highest median resale gain at $373,500, ahead of Auckland ($350,000) and Wellington ($340,000), while Christchurch had the lowest among the main centres at $263,500.
“In Christchurch, prices didn’t climb to the same heights as Auckland or Wellington during the boom, so there’s been less distance to fall, and fewer owners pushed into a loss-making position,” Mr Davidson said.
“The flip side is that because the market has generally been more affordable, the resale gains tend to be smaller in dollar terms.”
Queenstown continues to stand out among regional markets, with only 3.6% of sales resulting in losses while delivering median gains of $565,500.
This aligns with the area’s Home Value Index results, which show values in the region are only 6.6% below their peak.
“Queenstown’s unique mix of limited supply, strong domestic and international demand, and high-end property has underpinned its resilience,” Mr Davidson said.
“Even when volumes slow, sellers in these markets are rarely forced to sell at a discount and buyers are often prepared to pay a premium for the lifestyle and location.”
Looking ahead, Mr Davidson suggests that even if property values remain stable in the coming months, the proportion of loss-making resales could still increase as sellers become more willing to meet market demands.
“Keep in mind that the gross profits of $279,000 in Q2 may look large but for many owner-occupiers, this generally won’t be a cash windfall. Provided they’re not shifting to a cheaper location or downsizing, that equity will just have to be put straight back into the next purchase,” he said.
