New Zealand property market rebounds: February sees positive growth

Mar 6

In a notable shift, New Zealand's property market recorded a 0.3% increase in property values during February, signaling a potential end to the previous market downturn.

Key Highlights:

National Growth: The CoreLogic Home Value Index (HVI) reported a 0.3% rise in national property values for February, bringing the median property value to $806,430.
Urban Centers Lead: Major cities such as Auckland and Wellington contributed significantly to this growth, reflecting increased buyer activity and confidence in urban markets.
Market Dynamics: The uptick in property values is attributed to factors including declining mortgage rates, stabilizing economic conditions, and sustained demand from both first-home buyers and investors.

Expert Insights:

Kelvin Davidson, CoreLogic NZ Chief Property Economist, observed that the recent stability in property values at the national level could be a sign of future growth potential.

He noted, "Since the ‘mini downturn’ seen through the middle part of last year petered out in August, national property values have been in a holding pattern—not moving clearly in either direction.

But with mortgage rates having dropped significantly from their peaks, property sales volumes have continued to rise in recent months and may well start to reduce the available stock of listings on the market in the near term."

Looking Ahead:

Industry analysts anticipate that if current trends persist, New Zealand's property market may experience continued modest growth throughout 2025. Factors such as favorable lending conditions, government policies supporting homeownership, and a resilient economy are expected to play pivotal roles in shaping the market's trajectory.

For more detailed insights and regional analyses, please refer to CoreLogic's comprehensive report.