A message from our chief executive
Dear Property Owner,
Change continues to reshape the residential market in New Zealand. From zoning reforms that will transform the face of our cities, to new affordability thresholds creating opportunity for first home buyers, and subtle policy shifts with implications for investors at every scale.
At times like these, perspective matters.
In Auckland, the scale of change under discussion cannot be overstated. Current consultation on zoning proposals signals the most dramatic urban reconfiguration in a generation.
Standalone homes, which today comprise around 62 per cent of the city’ s housing, are projected to fall to just 27 per cent. In their place, townhouses, terraced housing, and apartments are set to sprout, rising from 36 per cent to nearly 70 per cent of the region’ s total housing supply.
The implications go well beyond architecture and density. They touch infrastructure, schooling, healthcare and lifestyle. For buyers and sellers, this is not just about bricks and mortar; it’ s about a structural reshaping of their communities.
The debate around intensification in our largest city is backdropped by key attributes of the present market cycle. Prices have stabilised, in some areas, 15 per cent below their previous peak, inventory is abundant, and buyer confidence, according to ASB’ s latest Housing Confidence Survey, is at its strongest since 2011. the message is noteworthy: New Zealand is open to targeted foreign investment, without diluting housing affordability for the broader market.
Closer to the ground, the most striking trend is the activity of first-home buyers. The latest figures from the Reserve Bank( RBNZ) show record levels of low-equity lending, with first-time purchasers now accounting for 44 per cent of such approvals.
Affordability has improved to its best level in four years, and mortgage payments on a lower-quartile home now absorb a smaller proportion of income than at any point since 2021.
Investors, too, are returning, though in a more measured way, supported by fully deductible interest costs and improved yields in some areas. At the same time, higher council rates and softening rents in some centres remind us that returns are seldom uniform.
The residential sector is evolving both structurally and cyclically. The months ahead will bring shifts in density, affordability, and demographic demand. But the essence of property, and the fundamental need for home and investment, remains unchanged.
At Ray White New Zealand, our commitment is to help our clients and customers to navigate these changes with clarity, confidence and perspective. The market is moving, and the question for all of us is how best to move with it.
Please enjoy our 84th edition of Ray White Now.
Importantly, confidence has not widely translated into expectations of immediate value growth – perhaps a reflection of broader economic caution.
However, as sales activity continues to rise, and unemployment is forecast to ease from 2026, the direction of travel is clear.
As many commentators have noted, those with foresight are entering the market now, ahead of the curve.
Policy developments add further texture. The Government’ s decision to grant‘ golden visa’ holders the ability to purchase or build homes worth over $ 5 million dominated the news earlier this month.
Daniel Coulson Chief Executive Ray White New Zealand
Though in practice, the exemption touches fewer than one per cent of dwellings nationwide and will likely have an outsized impact on high-end markets in Auckland and Queenstown,
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