If you’re keeping an eye on the Auckland property market, you’ll know things have felt unusually subdued in recent months. With interest rates still comparatively high to the unsustainable lows of just a few years ago, and borrowing criteria tight, many buyers are holding back — and sellers are left wondering if now is the right time to make a move.

But beneath the quiet, there are signs of momentum building.

What We’re Seeing:

  • More serious buyers: Motivated buyers are still in the market — especially for well-presented, realistically priced homes. Our recent successes in selling 1/23 Walsall Street and 34A Haig Avenue are testament to this.
  • Investor confidence is slowly lifting: The Government’s recent policy changes, including the return of interest deductibility, are starting to turn the tide.

Restored Interest Deductibility

The current Government has committed to fully restoring mortgage interest deductibility on a phased basis:

  • 60% deductible from 1 April 2023
  • 80% from 1 April 2024
  • 100% from 1 April 2025

This change increases net yield for landlords, giving them more breathing room to invest back into their properties — a win for tenants looking for better maintained, longer-term rental homes. It is also expected to boost investor confidence, particularly in the lower- to mid-tier Auckland suburbs where yields have been tight.

Bright-Line Test Reduction

The bright-line period — effectively a capital gains tax on investment property sales — was 10 years under the previous government. It has now been reduced to 2 years, effective from 1 July 2024.

This gives investors greater flexibility provided they hold the property for more than two years.

What’s Happening in the Rental Market?

Auckland’s rental market is experiencing some of the steepest price drops in the country, as rising supply meets patchy demand — particularly in city-fringe and apartment-heavy areas.

According to Trade Me Property’s latest rental report, the Auckland region saw a 2.7% decrease in median weekly rent in May 2025, compared to the same time last year. CBD apartment listings are seeing the greatest competition, with more stock remaining vacant for longer.

While this presents short-term challenges for landlords, it’s also an opportunity:

  • Tenants benefit from greater choice and improved quality
  • Landlords who invest in presentation, pricing, and professional management are securing better tenants, faster

What’s Ahead:

  • Pent-up demand is real: Many buyers have been “waiting it out” — and when confidence returns, we expect to see a sharp upswing in interest.
  • Development pressure could benefit long-term affordability: National and ACT have pledged to cut red tape for developers, including:
    • Streamlining consenting processes
    • Revising the Resource Management Act (RMA)
    • Incentivising councils to release more land

These initiatives aim to increase housing supply, particularly in Auckland. While that may place pressure on outdated stock, it’s also the encouragement many landlords need to reposition their investments effectively.

Our Advice?

If you’re a seller: now is the time to prepare. Declutter, refresh, and gather advice so you’re ready to go when the market picks up.

If you’re a buyer: don’t assume everything is out of reach. This market presents real opportunities — especially if you’re buying and selling in the same conditions.

If you’re a landlord: the rental market is shifting. Now is the time to review your pricing, presentation, and strategy. We’re here to help ensure your property stands out and secures great tenants.

We’re always happy to chat about your property plans, even if you’re just looking for guidance or a no-pressure appraisal.