NZ Property Values Continue Downward Trend Amid Buyer-Friendly Market
New Zealand property values continued to fall in August, marking their third consecutive month of decline. The Cotality Home Value Index dropped by 0.4%, extending a 1.3% fall over the past three months and leaving national values down 18.2% from their peak.
Auckland and Wellington remain sluggish, while Christchurch has proven more resilient in the market where listing stock remains historically high. Sales activity is also soft, with only 6,175 property deals recorded nationally in August, a decline of 11.6% compared to the same month last year.
According to Cotality's Chart of the Month, first-home buyers are making up a significant portion of purchases, accounting for 29.1% of sales across July and August. Movers, on the other hand, remain relatively subdued, which is one reason why sales activity remains weak despite improved affordability.
The Reserve Bank's decision to lift the official cash rate to 2.75% has added a fresh headwind to the market, with borrowers already feeling the increase. Gross rental yields remain in the high 3% range nationally, lowest in Auckland and Wellington among the main centres.