TENANT CHOICE EXPANDS
“ Backdropped by all this change, New Zealand’ s rental sector has entered a new phase of stability, reflected by muted rental growth and a broad spectrum of properties for tenants to choose from.
“ This signals a shift in market dynamics,” Snelling says.“ We’ re seeing more listings, steady rents, and greater choice for tenants – it’ s the most balanced environment we’ ve seen in more than a decade.
“ A combination of that high inventory, economic caution, and declining migration has contributed to softness in rental inflation, which for landlords, can be mitigated by putting a renewed focus on value and presentation.
“ If your property isn’ t priced right or presented well, tenants can and will move on quickly.”
A NEW ECONOMIC OUTLOOK
Following bleak reports over the last few years, Snelling says the macroeconomic outlook has turned a corner, supported by Treasury forecasts from Budget 2025, which show:
• House price growth of 5.50 per cent in 2026
• GDP growth averaging 2.90 per cent over the next four years
• Unemployment below five per cent
• Wage growth of 2.70 per cent, outpacing inflation, and;
• A fall in mortgage lending rates, with the Official Cash Rate( OCR) expected to drop to 2.50 per cent by October 2025.
“ These are strong signals,” says Snelling.“ While there were no major Budget announcements for landlords, the overall picture is one of renewed stability, and in our world, stability supports value.
“ This follows successive legislative changes over the last two years to reverse policies seen to have disincentivised landlords from property investment, which in itself will continue to support renewed investor confidence.”
Of headlines claiming that landlords are‘ exiting’ the market en masse, Snelling says‘ untrue’.“ The majority of those who were going to divest their assets did so after the last election. Those leaving now are a small group of investors, and often with a lower-quality home they’ ve failed to invest in- saying goodbye to these types of rentals isn’ t a bad thing for our industry.“
“ Compliance is the cost of doing business. If you’ re not prepared to work within the parameters, you shouldn’ t be providing something as essential as housing.”
“ Compliance is the cost of doing business. If you’ re not prepared to work within the parameters, you shouldn’ t be providing something as essential as housing.”
Zac Snelling Head of Property Management Ray White Group
INDUSTRY REGULATION LOOMS
Looking beyond 1 July, changes continue to brew, with new regulations of the property management industry expected imminently.
Snelling, who is a member of the Real Estate Industry New Zealand( REINZ) Residential Property Management( RPM) Sector Group, confirms,“ We’ re likely to see movement soon, and that’ s a critical step toward creating consistency and raising standards industry-wide.
“ At the same time, legislative changes regarding pet ownership rights are also on the horizon. Tenants will soon have the right to keep pets, with landlords required to respond‘ reasonably’ to written requests.
“ This applies only to new tenancies after the law comes into effect, but it’ s another signal of changing dynamics. Landlords should be preparing now – think about pet bonds and clear policies,” Snelling advises.
ADAPTING IS EVERYTHING
With compliance, regulation, and market conditions all poised to evolve quickly, the message from Snelling is clear: stay informed, engaged, and ahead.
“ Successful investors understand the importance of professional property management, especially in complex, fast-changing environments. We’ re not just about collecting rent – we’ re about protecting value, maintaining compliance and delivering outcomes.
“ In today’ s rental market, landlords do more than just show up, they must show up prepared. Because 1 July is more than a deadline, it’ s a line in the sand for the future of residential investment in New Zealand.
For more information about Ray White’ s Property Management offering, visit pm. raywhite. com.
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