Meanwhile, the global slowdown, including a declining Gross Domestic Product( GDP) in the US, adds volatility to export markets and investment confidence. While Europe and Australia have reported stronger-than-expected growth, the broader picture is mixed.
“ This could shift risk sentiment in either direction. However, New Zealand retains a relative advantage: moderate inflation, falling rates, and a clear fiscal path.
“ Sellers acting urgently before global headwinds become more pronounced locally may avoid the worst flow-on effects of potential volatility.”
GOVERNMENT FINANCES
The Government is due to release its Budget Policy Statement at the end of the month, with early disclosures indicating policymakers will retain their restrained fiscal approach.
“ It appears as though New Zealand’ s public spending is being channelled toward essential services, with limited capacity for large-scale infrastructure or housing investment,” Coulson says.
This signals two critical implications for the property market:
1. Delayed development pipelines. Reduced government investment in housing and transport infrastructure may limit new supply in key growth areas.
2. Increased private sector reliance. The burden of meeting future housing demand will likely fall more heavily on the private sector, potentially creating longterm opportunities and slowing immediate delivery.
“ For sellers, this could mean constrained supply pipelines and tighter development prospects, supporting existing property values in the medium term.”
In contrast to previous years, dominated by constraint and change, the current environment presents a valuable moment of balance.
“ Borrowing is cheaper, bank lending is accessible, and affordability has improved – all without the hysteria that begets policy change.”
However, Coulson warns this won’ t last forever.
“ With a backlog of unsold listings waiting to return, central government conservatism tightening public investment, and global uncertainties continuing to play out, sellers may have a limited time to leverage the current conditions.
“ The market is active, the buyers are ready, and the economics can work in your favour.”
Daniel Coulson Chief Executive, Ray White New Zealand
“ For homeowners weighing their options, the signals are clear: the market is active, the buyers are ready, and the economics can work in your favour. Those moving now can sell from a position of strength, before the tide turns.”
RAY WHITE NOW NEW ZEALAND | 9