The report shows that 93.6% of residential property resales in Q1 2025 delivered a gross profit—proving that, even in a transitioning market, long-term owners are continuing to benefit from capital growth.
While the figure is slightly down from 94.4% in the previous quarter, it underscores the resilience of the market compared to broader economic uncertainty.
“Although house prices have risen in the past two quarters, some of the weakness from earlier in the downturn is still flowing through the figures,” said Cotality Chief Property Economist Kelvin Davidson.
Resellers collectively made $675 million in profits* during the March quarter.
While that’s down from the $1.66 billion peak in early 2022, Davidson points out that the real key to success remains unchanged: time in the market.
“Hold period remains key to whether a property sells for a gross profit or loss. The median hold period for loss-making resales in Q1 2025 was 2.6 years, versus 8.7 years for profit-making sales,” he said.
The median gain for profitable sales was $290,000, vastly outpacing the typical loss of $40,000 on the minority of transactions that sold below purchase price.
Apartments continue to see greater variability in outcomes, particularly in Auckland, where 27.8% of apartment resales resulted in a loss.
Still, detached homes remain a strong performer, with 95.8% of house resales returning a profit.
“With the high proportion of loss-making apartment resales in Auckland and some investor nerves about interest deductibility and other rule changes, there seems to be some hesitancy at present,” Mr Davidson said.
Even so, the report is clear: most property owners, especially those who’ve held for the long term, are still coming out ahead.
*All prices in NZD
