Reawakening the rental market
Zac Snelling Head of Property Management Ray White Group
For much of 2025, the housing sector has felt suspended, neither in retreat nor recovery, just waiting for something to give. Now, at last, we’ re feeling an undercurrent, says Zac Snelling, Ray White Group Head of Property Management.
Lending rates are softening, confidence is flickering back, and the Reserve Bank of New Zealand’ s( RBNZ’ s) tone is distinctly doveish. These changes may seem technical, but for tenants and investors, they mark a quiet reawakening, where stability and opportunity open doors across the rental market.
“ The noise has been relentless,” Snelling says.“ But, if you strip it back, there’ s real progress beneath the surface. The market is recalibrating – and landlords who read that rhythm early will be best placed for what’ s ahead.”
THE ECONOMY
Following a five-month slide, national property values lifted modestly in September, according to property data and analytics firm Cotality.
The change was marginal, but meaningful – fuelled by easing mortgage lending rates, a brighter economic outlook, and tentative optimism among both buyers and banks.
“ October’ s 50 basis point cut to the OCR has seen a meaningful reduction in retail rates, almost immediately improving the yield equation for investors.
“ The RBNZ has also said it will reduce rates further if required, sending a clear signal to investors that the central bank is committed to supporting economic activity, of which the housing market is a critical part,” Snelling says.“ It’ s not just about the interest rate, though; it’ s about confidence in the direction of travel.
“ Sentiment is improving, and this stability offers some breathing room – and a valuable chance to prepare for new regulatory changes that will reshape tenant relationships.
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