A message from our chief executive
Dear Property Owner , The residential property market is on the move again .
Following a prolonged period of uncertainty , we ’ re seeing clear signs across the country of renewed activity . Buyers are returning , investors are re-engaging , and confidence is building . But this isn ’ t just a market shift , it ’ s an integral development for the broader economic flywheel .
Historically , housing is one of the first sectors to rebound , often leading the broader economy out of a downturn . Real estate moves ahead of other industries , driven by monetary policy , immigration and employment trends .
When property values rise , the effects ripple outward , stimulating business growth and consumer confidence . In New Zealand , where a significant portion of household wealth and business security is tied to residential assets , an improving market doesn ’ t just benefit homeowners – it fuels the wider economy .
Interest rates remain the dominant force shaping market sentiment . While the Reserve Bank of New Zealand ( RBNZ ) continues to strip chunks from the Official Cash Rate ( OCR ), which is now at 3.75 per cent and expected to reach 3.15 per cent by year-end , banks have responded with significant reductions to mortgage lending rates .
Meanwhile , net migration remains high , adding further pressure to housing stock . In key urban centres , the balance between supply and demand is once again tilting , reinforcing the fundamentals that drive long-term property value .
This will be a huge year for investors , too . The government ’ s recent tax and policy adjustments have had a significant effect on market performance , and while some landlords have exited , others are now re-entering , recognising the potential for capital gain and enhanced profitability .
The conversation has shifted from uncertainty to strategy – how best to structure investment to maximise returns in a market that rewards decisiveness and care for its tenants .
Against this backdrop , the importance of expert advice and market intelligence has never been greater . Understanding the nuances – whether it ’ s the impact of changing lending conditions , regional growth trends , or the evolving preferences of buyers and renters – will separate those who simply observe from those who act and thrive .
The market is in motion again . The question is , are you ready to move along with it ?
Please enjoy our 78th edition of Ray White Now .
For property owners , signals have been received loud and clear . Property sector dynamics have improved , and 2025 is the year for action .
Across our Ray White New Zealand network of more than 100 member branches , we ’ ve already seen auction clearance rates lift and well-positioned properties continue to attract multiple offers and competitive bidding .
Similarly , supply-side dynamics continue to evolve . The construction sector is adjusting after years of rapid expansion , and new-build supply has tightened . Developers are recalibrating , focusing on projects that align with the new reality of more cautious financing and shifting urban demand .
Daniel Coulson Chief Executive Ray White New Zealand
RAY WHITE NOW NEW ZEALAND | 4