Popular areas such as Bay of Islands , Marlborough Sounds , Auckland ’ s North Shore , and Queenstown ( Lake Wakatipu ) are expected to increase in demand through the summer months , especially in the upper quartile and luxury market . These purchasers are more resilient against financial fluctuations , which drives demand for lifestyle properties with growing interest in remote and technical design homes .
EIGHT MAIDS A-MILKING : REGIONAL GROWTH AREAS
Regional areas of New Zealand have been affected by widespread cost-of-living pressures and challenging economic conditions in 2024 . While many regions report softness in sectors like retail , hospitality , construction and manufacturing , early signs of recovery are emerging , including a rise in international visitors . Optimism is growing for 2025 , with regions that feature affordable housing options , family-friendly community amenities and established or under-construction infrastructure poised to capture the most value growth as families and first-home buyers relocate in search of value . Future projections indicate continued expectations in areas with these credentials , like the Western Bay of Plenty , Northern Auckland and Southwest of Christchurch Central .
“ Optimism is growing for 2025 , with regions that feature affordable housing options , family-friendly community amenities and established or under-construction infrastructure poised to capture the most value growth .”
NINE LADIES DANCING : LUXURY PROPERTY TRENDS
The luxury property market in New Zealand is hotly contested and undersupplied , with the highest concentrations in Auckland and Queenstown . These properties typically feature luxury amenities on large landholdings with advantageous natural features . A relatively small proportion of high-net-worth buyers and overseas investors are the primary buyers .
Despite market volatility , demand for these homes remains strong , driven by the enduring appeal of premium locations .
TEN LORDS A-LEAPING : INTEREST RATES & LENDING
Mortgage lending rates have shown signs of stabilising , with a decrease in short-term retail rates driving more activity in the housing market . Competitive lending conditions , including waiving low equity premiums and bank cashback incentives , make it a good time for borrowers . House prices are projected to rise by around six per cent in 2025 despite persistent affordability challenges .
ELEVEN PIPES PIPING : FIRST HOME BUYERS
First home buyers have enjoyed improved affordability through the latest market downturn as house prices decreased . However , challenges are rising , with mortgage serviceability still higher than in previous years . Despite the rising cost of ownership , as Kiwis face higher costs for council rates , insurance , and ongoing maintenance , the long-term outlook for homeownership remains positive , with a rising proportion of home owners compared to those that rent .
TWELVE DRUMMERS DRUMMING : THE BIG PICTURE
New Zealand ’ s economic landscape is influenced by external and domestic factors , including the potential impact of trade tariffs and the RBNZ ’ s monetary policies . Though affected by global economic pressures , the housing market remains stable with signs of a housing recovery . The RBNZ ’ s moves to reduce the OCR have re-energised market sentiment since the easing cycle began in August . Overall economic indicators continue to improve , boding well for the first half of the new year and buyers and sellers turn their attention to the new year objectives .
As 2025 unfolds , it ’ s clear that while challenges remain , opportunities for growth and stability abound for those navigating the market with their eyes open .
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