New Zealand’s property market faced a sharp downturn in 2024, driven by sinking property values and an all-time low in listings. December concluded the difficult year, with key metrics hitting record lows across the nation.
Property Values Decline Across Key Regions
CoreLogic NZ’s January Housing Chart Pack revealed the full extent of the downturn, with Auckland and Wellington experiencing steep drops in property values—approximately 25% and 22%, respectively. Christchurch, while faring better, still saw a 7% decline.
Nationally, the market dropped 3.9%, reaching its lowest point in 17 months. “In December, the national figure edged down by another 0.2 per cent,” said Kelvin Davidson, CoreLogic NZ Chief Property Economist.
“That was the ninth fall in the past 10 months, with those drops initially reflecting high mortgage rates, but more recently the weakness of the labour market.” The market’s total value now stands at $1.62 trillion, with the impact stretching beyond major centres to regional areas.
December Sets New Lows
The property market slowdown deepened in December 2024, with new listings hitting their lowest level for any December in 17 years, according to realestate.co.nz. In Auckland, new listings dropped to an all-time low for any month on record.
“Historically, December listings are about 30% lower than November, but in recent years, that drop has grown to 50% or more,” said Vanessa Williams, spokesperson for realestate.co.nz.
Nationally, new listings plummeted by nearly 60% from November. Stock levels dipped below 30,000 properties for the first time since August 2024, though year-on-year figures showed an 18.5% increase, offering buyers more choices compared to December 2023.
A Buyer’s Market Emerges
In some regions, especially Auckland and Wellington, listings rose 25% above the five-year average, giving buyers more leverage in negotiations. At the same time, many borrowers gravitated toward shorter-term loans due to high interest rates. “Lower mortgage rates will obviously be a boost for sales volumes and property values,” said Mr. Davidson.
He cautioned, however, that debt-to-income (DTI) ratio caps could present challenges in 2025 by limiting some buyers’ borrowing capacity. “It’s not great news for homeowners, especially those that purchased around peak levels, but ultimately the downturn conditions are most favourable for recent buyers,” he added.
Challenges and Opportunities Ahead
For buyers, the market offers increased stock levels and reduced competition, creating more negotiating leverage. Forecasted lower mortgage rates in 2025 may further ease financial pressures.
For sellers, however, the subdued conditions present challenges.
Pricing strategically is critical to navigating the downturn, though pockets of opportunity remain in resilient regions such as Southland, Taranaki, and Coromandel.
“The property market always cools in December, but the end of 2024 was record-breakingly quiet,” Ms. Williams said.