New Zealand's property market 'chilly amid economic challenges'

Wellington: New Zealand's property market has continued to see a rising number of new listings, contrasting with a noticeable decline in buyer activity which is reflected in lower national sales figures.

The property market in June reflects the wider economic climate in New Zealand, the Chief Executive of Real Estate Institute of New Zealand (REINZ), Jen Baird, said on Monday, Xinhua news agency reported.

The total number of properties sold in New Zealand decreased by 25.6 per cent year-on-year to 4,356, and by 32.6 per cent compared to May 2024, according to the REINZ monthly release.

"The typical winter lull, compounded by current economic conditions, has contributed to lower levels of activity in the market," Baird said, adding that the national sales decreased by 11.1 per cent compared to May 2024, reflecting a market performance below expected levels.

The national median price decreased by 1.3 per cent year-on-year to 770,000 NZ dollar (about $469,500), and saw no change compared to May 2024, the data showed.

Nationally, listings increased by 25.5 per cent year-on-year to 7,805, continuing the trend seen all year, with high levels of choice for buyers nationwide, Baird said.

"Regardless of the economic conditions, people's lives change, they grow families and retire and need to make a property decision alongside those changes," she said, adding that some properties coming to the market were due to high interest rates, cost of living pressure or changing employment circumstances.

There was a notable decrease in buyer activity in June and a reduced sense of urgency, which was compounded by a slight change in tone coming from New Zealand's central bank, suggesting that this cycle of interest rate pain may have an end in sight, impacting the overall sentiment within the industry, Baird said.