INDUSTRY NEWSINTERNATIONAL

New Zealand property values flat as market uncertainty persists

National property values in New Zealand edged down by 0.2% in July, with the housing market showing little momentum amid ongoing economic headwinds, according to Cotality NZโ€™s latest Home Value Index.

The modest monthly decline mirrors the -0.2% annual change, bringing the national median property value to $819,921.

โ€œAt the end of 2024, our analysis suggested that 2025 was likely to be a ‘year of conflicting forces’ in the property market,โ€ said Cotality Chief Property Economist Kelvin Davidson. โ€œThat broad theme has proven correct.โ€

While falling mortgage rates have provided some support, Mr Davidson said the market remains subdued due to factors such as elevated listing volumes and a weak labour market.

โ€œThe jobs market uncertainty is surely a key limiting factor at present.โ€

Among the main centres, Auckland and Dunedin were the weakest performers in July, both recording -0.6% monthly declines.

Wellington dropped by -0.2%, while Christchurch saw a minor -0.1% fall. Hamilton and Tauranga bucked the trend, up +0.4% and +0.9% respectively, though Taurangaโ€™s annual growth remains modest at +0.8%.

Despite soft prices, Mr Davidson noted a slight tightening in supply.

โ€œRising sales activity has now started to erode the stock of available listings a touch,โ€ he said, suggesting that could create some upward price pressure later in the year – particularly as more borrowers roll off higher-rate loans.

Regional markets showed slightly more resilience.

โ€œThere was a little more strength in provincial areas, possibly reflecting NZ’s ongoing two-speed economy,โ€ said Mr Davidson, with New Plymouth, Hastings, and Whangฤrei all recording gains of at least +0.5%.

Looking ahead, Cotality expects sales volumes to continue recovering gradually but remains cautious about price growth.

โ€œMarket activity levels aren’t racing away and both buyers and sellers seemingly remain in a measured mood,โ€ he said.

A potential rate cut on 20 August could offer support, but he warned: โ€œThe market may struggle to generate much more than a 1โ€“2% rise in 2025.โ€

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Catherine Nikas-Boulos

Catherine Nikas-Boulos is the Digital Editor at Elite Agent and has spent the last 20 years covering (and coveting) real estate around the country.