C21 Market Pulse | August 2025 | New Zealand

WELCOME TO THE August 2025

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Century 21 New Zealand Ltd

CON t RIB ut OR s

REINZ

Cotality

Julius Capilitan

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Century 21 New Zealand +64 9414 6041

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Century 21 New Zealand +64 9414 6041

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By Julius Capilitan

s ALE s LIF t DE s PI t E WIN t ER CHILL

BY REINZ

The Real Estate Institute of New Zealand (REINZ) has released its figures for July 2025, showing that sales activity has increased compared to the same time last year. Listings were lower in July 2025 than a year earlier, despite a modest month-on-month rise after a significant drop in June. The national median price increased slightly year-on-year, reflecting a slight rise amid an otherwise steady trend, with monthly movements shaped by seasonal factors.

“We’re seeing the usual seasonal patterns play out, with buyers still active in the market even as listing volumes tighten ahead of spring,” said Lizzy Ryley, REINZ Chief Executive. “The lift in sales compared to last July suggests there’s a solid level of interest despite fewer new listings coming to market.”

The median price for New Zealand increased by 1.8% year-on-year, reaching $767,250. Excluding Auckland, the median price increased by 3.9% year-on-year to $695,000. Auckland’s median price increased by 2.6% year-on-year, to $975,000.

Eleven out of the sixteen regions reported an increase in median prices compared to July 2024. The most significant year-onyear increases were recorded in Nelson, up 15.7% from $657,000 to $760,000, and in Otago, up 11.1% from $657,000 to $730,000.

“The data shows a broad-based resilience in property values, with price growth in some areas, which suggests that local markets

responded positively to buyer demand despite winter conditions,” Ryley says. “Compared to June 2025, the seasonally adjusted data indicates a slight increase in New Zealand’s median price. While some regions saw notable price growth, others experienced declines, highlighting a mixed housing market across the country.”

The number of properties sold across the country increased by

4.0% year-on-year, increasing from 6,074 to 6,319. When excluding Auckland, sales increased by 6.1%, from 4,166 to 4,421. Looking to the regions, eight regions recorded year-on-year increases in sales count - the highest of which was recorded in Nelson, which saw a 43.6% increase (from 55 to 79 sales). Other regions with notable sales increases included the Bay of Plenty (+18.9%), Hawke’s Bay (13.5%) and Northland (+10.5%).

ANNUAL MEDIAN PRICE CHANGES

$767,250

“Seasonally adjusted sales counts at the national level show sales were slightly down. Sales growth varied widely across regions, with strong rises in areas like Northland, while some regions experienced declines, reflecting a varied sales market across the country,” continues Ryley.

Looking at new listings, New Zealand saw a 4.2% decline in listings compared to July 2024, totalling 7,737 new listings. There was also a decline in listings for New Zealand, excluding Auckland, down 5.2% to 4,925. Inventory levels across the country also recorded a decrease, down slightly by 0.4% year-on-year to 30,430 available for sale.

In July, there were 853 auctions recorded, which represented 13.5% of all sales. For New Zealand,

excluding Auckland, there were 475 auction sales, which were 10.7% of all sales. The Bay of Plenty recorded the highest percentage of auction sales, with 24.1% of all sales being done by auction. The median number of days to sell for New Zealand declined by one day to 48 days. The same was recorded for New Zealand, excluding Auckland.

“While buyers remain active, local salespeople around the country say they’re not in a rush to purchase. With the median days to sell holding steady or improving slightly, it’s clear that buyers still feel they have time to assess the market,” adds Ryley.

Ryley notes that local salespeople believe most vendors are realistic and are meeting current market

Source: REINZ Monthly Property Report 14 August 2025.

expectations. However, due to declining listing volumes, winter conditions and uncertainty about buyer behaviour, many prefer to wait until spring, when activity usually increases and confidence tends to lift.

The House Price Index (HPI) for New Zealand is currently at 3,564, showing a year-on-year increase of 0.1% and a decrease of 0.4% compared to last month. Over the past five years, the average annual growth rate of New Zealand’s HPI has been 3.4%.

H OW g OOD LAND s CAPIN g CAN BOO st YO u R HOME’ s

st REE t APPEAL

When it comes to selling your home or simply making it more inviting, first impressions count. The good news is, you don’t need a huge renovation budget to create a warm welcome. Smart landscaping is one of the most cost-effective ways to lift your property’s street appeal and make it stand out in any season.

Whether you’re p reparing to sell or want to enjoy your outdoor space more, here’s why investing in good landscaping pays off and how to get it right.

WHY STREET APPEAL MATTERS

Buyers often decide whether they like a home before they even step inside. A tidy, well-maintained front yard signals that a property is cared for and creates a positive feeling from the start. It sets the tone for

what’s inside and can even add thousands to the final sale price.

Good landscaping can also make a home look larger, highlight its best features and help it feel connected to its surroundings.

EASY LANDSCAPINg IDEAS THAT MAKE A BIg DIFFERENCE

You don’t have to overhaul your entire garden to see results. Small, well-planned updates can dramatically boost street appeal.

Start with the Lawn:

Keep it neat, healthy and edged. If your lawn is patchy, reseed or consider fresh turf for an instant lift.

Add Native Plants:

Choose hardy New Zealand natives that thrive in your local climate. They’re low-maintenance, water-wise and add year-round colour and texture.

Frame the Entrance:

Use garden beds, potted plants or hedges to draw the eye to your front door. A clear, welcoming path makes the entry feel more inviting.

Refresh Mulch and Garden Borders:

Fresh mulch tidies up garden beds and helps keep weeds down. Clean, defined borders make your landscaping look intentional and cared for.

Update Outdoor Lighting:

Soft path lights, uplighting for trees or a feature light by the door can transform your garden after dark and add extra security.

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COMMON LANDSCAPINg MISTAKES TO AVOID

When planning your landscaping, think long-term. Avoid overcrowding plants, which can make the space feel smaller and create extra maintenance work. Choose plants that suit the local soil and sunlight so you don’t spend more time and money replacing them later.

If you’re unsure, keep it simple and neat. A clean lawn and a few well-placed plants often look better than an overcomplicated garden.

WHEN TO CALL IN THE PROS

While plenty of landscaping tasks can be tackled as weekend projects, larger jobs like installing irrigation, building retaining walls or planting mature trees are generally best left to professionals. An experienced landscaper can help design a layout that complements your home’s style and maximises your block.

KEY TAKEAWAY

First impressions matter, and great landscap ing is one of the easiest ways to boost your home’s street appeal and add real value. Whether

you’re getting ready to sell or simply want your home to look its best, a well-kept garden makes all the difference.

Thinking about selling and want to know which updates will pay off?

Contact your local Century 21 agent for trusted advice on how to present your home at its best.

s PRIN g BOARD tO s AVIN gs : A ugust MOR

A g E u PDAt E

For the first time in a long while, there’s a sense of relief in the air for Kiwi borrowers. On Wednesday 20 August, the Reserve Bank dropped the Official Cash Rate (OCR) to 3%. That may sound technical, but here’s what it really means: your mortgage just got cheaper.

Banks wasted no time adjusting, and here’s where things stand today (Wednesday, 20 August, 2025):

• 6-month fixed: as low as 5.19%

• 1-year fixed: around 4.79%

• First-home buyers: a standout 3.99% 1-year rate (with 10% deposit)

After years of climbing repayments, this is the first genuine breathing space many households have felt.

WHAT IT MEANS FOR YOU

First-Home Buyers

That 3.99% deal could be the difference between continuing to rent and finally stepping through the front door of your own home.

Existing Homeowners

If your fixed term is coming up, now’s the time to reassess. Many households will save hundreds of dollars each month compared to where rates peaked.

Investors & Business Owners

With borrowing costs easing, there’s a fresh chance to review your lending structure and plan ahead with more confidence.

Julius says:

“This cut to 3% is exactly what we were expecting, and it’s good news for Kiwi households. The key now is to act strategically. Whether you’re buying your first home or reviewing your mortgage, this is the perfect time to reassess your options and make sure your lending fits your goals.”

BY JULIUS CAPILITAN , C21 FINANCIAL

LOOKINg AHEAD

Could rates fall further? Quite possibly. Economists suggest there may be another cut or two within the next six months if inflation continues easing. That means there’s room for opportunity. But the right move depends on your personal strategy. For some, fixing now locks in stability. For others, a shorter term may leave the door open for even lower rates ahead.

Either way, spring is nearly here, and with it comes fresh opportunities. Let’s turn your next move into the mortgage win of the century

W HAt tO EXPEC t At AN HOME OPEN:

B

u YER E t IQ u E tt E

AND IN s IDER t IP s

Attending a home open is an exciting step in the property search, but it can feel a bit daunting if you’re not sure what to expect. Whether you’re a first-home buyer or a seasoned investor, knowing how to approach an inspection can help you make a smart decision and leave the right impression if you’re serious about making an offer.

Here’s what you need to know before stepping through the front door of your next open home.

DO YOUR HOMEWORK FIRST

Before you head out, spend some time researching the property. Check the listing details, look at recent sales in the area and plan your route so you arrive on time. Bring a notepad or use your phone to jot down any questions you might have for the agent.

It’s also a good idea to read the contract of sale if it’s available. This can help you understand what’s included and if there are any conditions attached.

ARRIVE ON TIME AND BE RESPECTFUL

Home opens are usually scheduled for a set window, often 30 minutes. Arriving on time ensures you have enough opportunity to look around and chat to the agent without feeling rushed.

Be courteous to the homeowner’s space. Wipe your feet, avoid

touching personal items and keep children close by if they’re with you.

KNOW WHAT TO LOOK FOR

It’s easy to get distracted by fresh paint and styling, but make sure you look deeper. Pay attention to things like:

• Storage space and cupboard sizes

• Signs of damp or water damage

• Natural light and airflow

• Noise levels, both inside and outside

• The condition of fixtures and fittings

Don’t be afraid to open cupboards or windows if it helps you get a better feel for the property’s condition.

ASK THE RIgHT QUESTIONS

An open home is your chance to gather as much information as you can. Ask the agent about the property’s history, any recent renovations, average utility costs and why the owners are selling.

If you like the property, find out if there’s a lot of interest and how soon offers need to be submitted.

BE HONEST WITH THE AgENT

Agents appreciate genuine feedback. If you’re keen, let them know so they can keep you updated about offers or upcoming inspections. If you’re not interested, it’s fine to say so politely.

Leaving your details with the agent is a good way to stay in the loop if you’re still deciding.

CONSIDER THE NEIgHBOURHOOD

An open home isn’t just about the house itself. Take a walk around the neighbourhood before or after the inspection. Check for nearby parks, cafes, shops, public transport and the general vibe of the street.

If possible, visit at different times of day so you know what parking, traffic and noise levels are really like.

KEY TAKEAWAY

A home open is your chance to get a clear picture of whether a property is the right fit. With a little preparation, good questions and respectful etiquette, you’ll make the most of every inspection and feel confident about your next step.

READY TO FIND YOUR DREAM HOME?

Contact your local Century 21 agent today for expert advice and access to the latest properties in your area.

I NVE stOR COMEBACK: ‘M u M s AND DAD s ’ ARE EYEIN g u P CHEAPER, EXI st IN g PROPER t IE s

BY COTALITY

Cotality's latest Buyer Classification data for June is in and it offers a full view of buyer behaviour across New Zealand for Q2. The figures point to a resilient and active first home buyer segment amid ongoing (but slightly lesser) affordability challenges. At the same time, ‘Mum and Dad’ investors continue to raise their activity levels, gravitating towards more affordable parts of the market.

FIRST HOME BUYERS STILL STRONg

Over the three months to June, the broad trends for each of the different buyer groups that we’ve been seeing for a while have held in place.

First home buyers (FHBs) have accounted for a touch more than 26% of property purchases over the past three months, continuing to hover at or around record highs.

Christchurch and Dunedin came in at 27% for FHBs in Q2, with Auckland at 29%, Hamilton 32%, and wider Wellington higher still at 36%. In a busier overall market, the number of FHB deals is steadily rising around the country too.

Why is this happening? FHBs continue to benefit from being able to tap into their KiwiSaver for at least part of the deposit, as well

making full use of the low deposit lending allowances at the banks (under the LVR rules). The fact that property values nationally remain 16% below the peak is an extra factor in buyers’ favour at present, as is the still-strong desire to ‘get on the ladder’ despite mortgage costs typically being higher than rents.

SMALLER PLAYERS ARE DRIVINg THE INVESTOR COMEBACK

Elsewhere, mortgaged multiple property owners (MPOs, including investors) remain on the comeback trail, accounting for around 23% of purchases in Q2 – still shy of their long-term average of about 25%, but up from the trough of 21% in the middle of last year. Among the main centres, Auckland and Christchurch saw 26% of activity go to mortgaged MPOs in Q2, with Hamilton a little higher again at 27%.

A closer look at the data reveals that this rebound for MPOs is being led by smaller investors; those

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with a total portfolio of up to four p roperties (including their own home) have seen their share of the market rise from 12% to 14%.

Meanwhile, there’s also been an increasingly active focus toward the more affordable end of the market. Mortgaged MPOs’ share of purchases in the bottom 30% of properties by value has risen from 21% in 2024 to 24% so far in 2025.

Additionally, there is a growing preference among mortgaged investors for existing properties (as opposed to new-builds). So far they’ve accounted for 23% of existing property purchases in 2025, up from 20% in 2024.

Of course, none of this is surprising. After all, existing properties no longer have the same tax disadvantages they carried when

interest ded uctibility was being phased out, and the abundance of listings on the market probably also means some savvy investors can pick up ‘bargains’ in the lower price brackets, potentially with higher rental yields.

Similarly, lower mortgage rates will be making property investment more appealing to a wider range of ‘Mums and Dads’, given that they directly reduce the cashflow top-ups out of other income that are typically required on a rental property purchase. Over the past year or so, a typical top-up might have fallen from $400-$500 per week to about $200 now.

That said, it’s not all one-way traffic for investors at present. After all, rents have generally gone flat lately, even dipping in key markets such as Auckland and Wellington, costs such as council rates continue to rise, and the debt-to-income ratio

rules for mortgage lending might just be starting to bite for some would-be investors.

MOVERS MIgHT BE A gROUP TO WATCH

Over the next quarter or two, there seems a good chance that FHBs and mortgaged investors will continue to find market conditions to their liking. But movers (i.e. relocating owner occupiers ) could be worth watching, given that they’ve been relatively quiet in recent years yet changes in household circumstances such as births, marriages, job shifts are always happening.

In other words, there might be some pent-up demand to move house, and as we outlined in a recent article, a sluggish market can be an ideal time to do so.