As we move into the second quarter of 2025, our economic environment remains challenging, and Auckland’s property market continues to reflect these broader conditions. However, while pressures persist, recent data highlights emerging trends and pockets of resilience. Encouragingly, New Zealand’s housing market is showing clearer signs of recovery, with sales activity lifting steadily in early 2025, supported by easing interest rates and growing confidence among forward-looking Kiwis.
Sales Activity and Market Dynamics
According to CoreLogic NZ’s April Housing Chart Pack, national sales volumes in March were 11% higher than the same time last year, marking nearly two years of consistent growth in property transactions.
“Clearly confidence levels are growing, no doubt reflecting the falls in mortgage rates,” said Kelvin Davidson, CoreLogic NZ Chief Property Economist.
The Real Estate Institute of New Zealand (REINZ) similarly reported that March 2025 saw a seasonal uplift in market activity. Nationally, inventory levels increased by 10.9% compared to the previous year, providing buyers with more options.
Property Values and Affordability
Despite the rise in sales, the REINZ House Price Index (HPI) reported a year-on-year decrease of 2.2% in Auckland’s housing market value as of March 2025. This adjustment reflects a market aligning more closely with buyer expectations, potentially improving affordability for first-time buyers.
One of my personal highlights last week was exchanging keys with two young couples purchasing their first standalone homes—one in Avondale, the other in Beach Haven. Being a part of these milestone moments reminds me of what a true privilege it is to serve as real estate agents.
Rental Market
While the rental sector continues to favour tenants in many areas—with high listing volumes and easing migration contributing to downward pressure on asking rents—investor confidence is also rebounding as mortgage rates drop.
Lower borrowing costs have reignited interest from a wide range of buyer groups. Investor activity, in particular, is trending upwards.
“Mortgaged investors remain on the comeback trail,” said Kelvin Davidson. “Lower interest rates are certainly helping investors by reducing the cashflow top-ups generally required on a rental property purchase. While the share of purchases going to mortgaged multiple property owners (MPOs) remains below historical levels, this group has certainly started to return. Indeed, at 23% in Q1 2025, they’re back to levels not seen since late 2021.”
Looking Ahead
While the market still presents its share of challenges, it also offers opportunities for informed buyers and sellers. As always, our team remains committed to providing expert guidance to help our clients navigate these evolving conditions with confidence.
At Goodwins, we combine the strength of over 30 years’ trusted service in Auckland with a forward-looking commitment to excellence. Our nationally accredited property managers, investment in leading-edge technologies, and proven track record ensure we consistently deliver the best results for our clients.
Goodwins is backed by a leadership team with diverse, high-performing professional backgrounds. We prioritise ongoing personal development and uphold a business ethic that is uncompromising.
If you’re an experienced sales agent looking for a place where culture matters, we invite you to explore a future with us.
Discover the Goodwins difference at www.goodwins.co.nz or contact me for a confidential conversation.
