New Zealand’s property market continues to point to signs of recovery, according to new data from Cotality NZ’s latest Monthly Chart Pack.
Kelvin Davidson, Chief Property Economist at Cotality, said property sales volumes have been gradually trending upward for nearly two years.
In April, sales rose 4% compared to a year earlier – lifting activity to 7% above the historical norm for this time of year. Falling mortgage rates have clearly supported this momentum, according to Mr. Davidson.
“Sales activity has been on a steady incline, and we're now starting to see this translate into home values,” Mr Davidson said.
The Cotality Home Value Index rose 0.3% in April – the fourth consecutive monthly increase – although growth remains modest. Among the main centres, Hamilton and Christchurch led the gains, while Dunedin, Wellington and Tauranga showed flatter results.
“Despite these signs of improvement, the market remains tilted in favour of buyers,” Mr Davidson noted.
“Stock levels are still elevated by historical standards, which will likely keep price growth in check.”
Mortgaged multiple property owners are also regaining ground. This group accounted for 24% of April’s sales – the highest share in more than three years. Lower mortgage rates are reducing cashflow shortfalls, improving the financial appeal of property investment.
Looking ahead, Mr Davidson said the outlook for 2025 remains cautiously positive.
“We’re expecting a moderate upswing, with national property values forecast to rise around 5% for the year,” he said.
“Lower mortgage rates will be a key driver. But we’re also watching the wider economy, the labour market, and the impact of lending restrictions, particularly debt-to-income limits.”
Highlights from the May 2025 Housing Chart Pack include:
- New Zealand’s residential real estate market is worth a combined $1.64 trillion.
- The CoreLogic Home Value Index shows property values across New Zealand increased 0.3% in April. Over the three months to April, there was a 0.9% rise in median property values across NZ.
- The total sales count over the 12 months to April is 84,226.
- Total listings on the market were 31,035 in April. The total number of properties listed on the market remains elevated, although the seasonal fall for new listings flows means that agreed sales have just started to eat into stock levels a little in the past few weeks.
- On rents, the pace of growth remains subdued, with net migration having fallen a long way from its peak, and the stock of available rental listings on the market still elevated.
- Gross rental yields now stand at 3.9%, which is the highest level since mid-2015.
- Inflation is firmly back in the 1–3% target range, and after April’s 0.25% cut, further OCR reductions seem likely in the coming months.
- The Chart of the Month shows that First Home Buyers are taking advantage of multiple funding options to get a foot on the property ladder – making up 27% of property purchases in April
Download a complete copy of CoreLogic NZ’s May Chart Pack online.
CoreLogic New Zealand