New Zealand's housing market is creating a tale of two countries. While some regions seem to be presenting opportunities, others are struggling.
“‘Patchy’ is the word that sums up New Zealand's loan market,” Craig Pope, founder and mortgage adviser at Craig Pope Financial. "There are different pockets around the country. But it's still a little bit up and down, a little bit patchy, and constrained at the moment."
New Zealand's narrative of conflicting forces includes Kiwis amid rising unemployment and falling property prices, causing some would-be buyers and sellers alike to remain cautious. Meanwhile, falling interest rates – and the possibility of further rate cuts later this month as the Reserve Bank of New Zealand (RBNZ) meets – have acted as a stimulus to the economy. But not all regions are reacting equally.
During the height of the pandemic, many people were retreating to New Zealand as a haven, causing property prices in Wellington to rise 25 per cent from 2020 to 2021, according to the Reserve Bank of New Zealand. Currently, Wellington region, is a little bit start-and-stop. Confidence is still pretty low around Wellington, with the government having cut quite a few jobs, and then you couple that with the economic state across the country.
Meanwhile, some say Auckland's property market is encouraging. While the nation's largest city began 2025 with an elevated property supply, prices have remained steady. This could signal a bottom of the market – and an opportunity for new entrants.
Auckland, at the moment, according to statistics, is s currently undervalued, meaning that there are better deals to be had there, if the growth in Auckland sustains as previously.
