Latest news with #CotalityNZ
1News
03-07-2025
- Business
- 1News
Average NZ property value sees 'modest' uptick in June
Property values in New Zealand have increased by 0.2% in June, according to Cotality NZ's hedonic Value Index – despite low interest rates expecting to boost sales. The average property price is now $815,389, according to the index. This has reversed two minor falls of 0.1% in April and May. Since the January 2022 peak, property values remain down 16.1%. However, Cotality said they have managed to "edge up" by a total of 1.1% since September last year, and by 0.6% in 2025 so far. "Values around the main centres were either flat in June or up slightly," according to the report. In Auckland and Wellington, prices were stable. But property prices rose 0.2% in Dunedin, 0.3% in Hamilton, and 0.6% in both Tauranga and Christchurch. ADVERTISEMENT Cotality NZ chief property economist Kelvin Davidson said the result emphasised the variability of the market. "On one hand, mortgage rates have come down a long way, and that benefits borrowers whether they're in Whangārei or Winton. But the normal upwards influence this would tend to have on sales volumes and property values is being dampened by other forces." Davidson said in particular, the "abundance of listings on the market" means most buyers "aren't in a rush" and can be "quite tough when it comes to price negotiations". "The subdued labour market remains an important factor too. After all, it's not only the direct job losses that are problematic, but a reduction in security for those who have kept their jobs will also be weighing on the property market. "Of course, problems for some are opportunities for others, and a soft market is providing plenty of scope for first home buyers." Davidson added mortgaged multiple property owners also remains on the comeback trail, particularly at the smaller end – those buying their first rental investment, or perhaps their second." Outside of the main centres, property values were "a mixed bag" in June. ADVERTISEMENT Rotorua (-0.7%), Gisborne (-0.2%), Whanganui (-0.1%) and Hastings (-0.1%) were all down in June. However, Whangārei (0.4%), Palmerston North (0.5%), Invercargill (0.4%), and Queenstown (0.6%) all saw modest rises. On the regional results, Davidson said it is "always hard to cast a wide net" over every region to determine the factors impacting the individual housing markets of every region. "At present, for example, lower mortgage rates are obviously a common factor, while some will be faring better than others off the back of a strong dairy sector. "Ultimately, the wider economic uncertainty we're currently seeing and a subdued labour market still seem to be causing property market variability from month to month in a number of regions."
NZ Herald
11-06-2025
- Business
- NZ Herald
Housing market stabilising as mortgage rates ease
Between April and June, 62% of suburbs (1652 out of 2661) recorded flat or rising median values for standalone houses. Photo / Fiona Goodall The national housing market is showing fresh signs of stabilising as mortgage rates ease, according to Cotality NZ. Cotality's Mapping the Market report revealed that the pick-up of standalone houses is beginning to regain ground in many suburbs. Between April and June, 62% of suburbs (1652 out of 2661) recorded
NZ Herald
14-05-2025
- Business
- NZ Herald
Property resellers pocket $280k average profit in first three months of 2025 despite soft market
Kelvin Davidson, chief property economist for Cotality NZ, said the figures for the March quarter tell a story of resilience. 'Despite house prices still sitting about 16% below their early 2022 peak, most property owners are continuing to sell for a profit – especially those with longer ownership periods.' The median resale loss decreased slightly to $50,000 in the first quarter of the year, continuing a three-year trend of relative stability in the $50,000–$60,000 range, the report said. Davidson said longer hold periods remain key. 'A typical property resold for a profit in the first quarter of 2025 had been owned for 9.1 years. That's unchanged from the prior quarter and underscores how time in the market generally shields owners from volatility,' he said. The pain and gain figures across the main centres mostly shifted against resellers in the first quarter of 2025, according to the report. In Auckland, 14.2% of property resales in the first quarter were made below the price originally paid, up slightly from 13.5% in the previous quarter. The share of resales made for a gross loss in Wellington rose from 9.8% to 10.9%, while Tauranga jumped from 6.7% to 9.4%. The only main centre to improve from a reseller's perspective was Christchurch, improving slightly from 4.7% to 4.6% share of resales made for a gross loss. Across the country, eight cities averaged $300,000-plus profit gains for the quarter, including Tauranga ($362,500), Auckland ($356,000), Hastings ($345,000), Wellington ($339,500) and Gisborne ($338,000). Hamilton recorded a median gross profit of $290,000, Christchurch ($267,700) and Dunedin ($270,500). Apartments under pressure In the first three months of the year, 32.8% of apartments were resold at a loss compared to just 8.4% of houses. For apartments, that was an increase from 28.6% in the previous quarter. The median loss on apartment resales was $63,000, while the median resale profit was $128,000. Davidson said the data didn't indicate a rush to offload apartments. 'There's no evidence that apartment owners are abandoning the market en masse,' he said. 'Loss-making sales of apartments might tend to reflect unexpected personal changes such as family issues, rather than widespread market retreat.' Slow and steady gains Davidson said while the abundance of property listings and a soft labour market are likely to weigh on prices in the near term, lower interest rates will lend gradual support. 'We're not anticipating a sharp rebound,' he said. 'But conditions are in place for a slow and steady uplift in values, which should continue to support profitability for resellers over the remainder of 2025.' The Official Cash Rate (OCR) has fallen 200 basis points since August last year from 5.5% to 3.5%. The next OCR decision will be made on May 28.
