New Zealand’s real estate industry is dynamic and diverse, ranging from residential and commercial property to lifestyle blocks and rural farms. Housing demand in the residential market is expected to continue to rise as the country’s population grows and urban centers become more populated, with greenfield development and foreign buyer policies current key topics of contention. Nevertheless, many in the country have discarded
, with the country’s unaffordable housing stock limiting the homeownership rate. The 2023 year showed some signs of movement in property prices, with
. Nonetheless, house prices were forecasted to grow at a reduced rate in 2024 as the imbalance between
and population increases persists. With recent market volatility caused by fluctuating interest rates, unstable home values, and rent affordability issues, renters and homeowners across New Zealand are becoming increasingly
.
Have mortgage rates reached their peak?
Housing affordability has been a key issue across New Zealand for many years, with the country having one of the highest house price-to-income ratios worldwide. While
New Zealand’s real house price index and
house price-to-income ratio have been slowly falling since the fourth quarter of 2021, potential homeowners still face several obstacles, including
high average new residential mortgage interest rates across all mortgage terms. In December 2023, the average interest rate for a new standard 1-year mortgage in New Zealand was 7.76 percent, with even higher rates recorded for floating and 6-month mortgage terms.
The majority of residential mortgage lending went to owner-occupiers where the property was not their first home. With mortgage rates showing signs of stabilizing at the end of 2023, property experts remain divided on where rates will go in 2024; nonetheless, ANZ Bank forecasts show rates likely peaked in 2023 and will start to decline.
Rent affordability
With climbing the rungs of New Zealand’s property ladder out of reach, many individuals and families are stuck renting for prolonged periods. However, with
rent prices rising due to low vacancy rates and high demand across the country and the share of monthly income spent on rent trending upwards coupled with a highly competitive rental market, renting is becoming a less appealing prospect. The Wellington and Auckland regions have historically recorded the highest rent prices, with
the average weekly rent in Auckland’s housing market at around 645 New Zealand dollars as of November 2023.
Commercial real estate
New Zealand’s commercial property landscape encompasses office, retail, accommodation, mixed-use, and industrial buildings. Industrial properties, vacant land, and development sites were in strong demand, with the industrial segment leading the market in sales and property transfers, accounting for almost 35 percent of
all commercial property sales across New Zealand in the first half of 2023. Commercial property is generally rented, making this segment a significant investment market in the country. While most of the investment is from local buyers, overseas investors also make a significant contribution.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
