In brief
In October, New Zealand’s property market cooled, with new listings falling 4.5% year‑on‑year and the overall supply of homes climbing 11.4%. Prices slipped across most regions, except Otago, and auction activity fell to a seven‑year low, signalling cautious behaviour from buyers and sellers ahead of the national election.
New Zealand’s property market cooled in October, with new listings falling 4.5% year‑on‑year and the overall supply of homes climbing 11.4% to an October level not seen since 2014, according to data released by realestate.co.nz on Friday. The slowdown occurred as voters prepare for the country’s general election scheduled for Saturday, the news outlet said.
The data also showed that auction activity’s share of new listings dropped to 22.1% in October, down from 26.2% a year earlier and 28.3% during the October 2023 election period. The share fell to its lowest level for October in seven years, the report noted.
Regional Variations
New listings fell in 11 of the 19 regions tracked by the site. Auckland, the country’s largest city, recorded a 7.9% annual decline in new listings, while the North Island’s Coromandel and Northland regions saw drops of 16.1% and 15.2% respectively. In contrast, the South Island bucked the trend, with listings in Otago rising 13.1% year‑on‑year.
Price changes mirrored this regional disparity. The national average asking price fell 2.7% year‑on‑year to 840,380 NZ dollars (about 468,188 USD) in October. Auckland’s prices fell 5.2% to 984,527 NZ dollars, whereas Otago saw the strongest regional increase, rising 13.2% to 646,871 NZ dollars.
Sarah Wood, CEO of realestate.co.nz, said that the decline in auction activity could signal a cautious approach from sellers, noting that auctions often reflect vendor confidence. Wood suggested that the wider economic challenges and global uncertainty were weighing on confidence, further contributing to the slowdown.
The auction share decline also highlights a shift in selling strategy. Historically, auctions have attracted faster sales and higher final prices, but the current drop to 22.1% of new listings indicates that sellers are favouring private sales or extended negotiations rather than the urgency of an auction. Once again, the figure marked the lowest October share in seven years, the data showed.
Analysts point to the election’s proximity as a key driver of caution. With voting on Saturday, both buyers and sellers may be postponing decisions until after the election’s outcome is clearer. Xinhua reported that vendors and buyers alike are delaying actions amid economic and political uncertainty in the weeks leading up to the vote.
Other questions remain about how the election’s outcome might reshape New Zealand’s housing policy. If a new government were to adopt stricter lending rules or introduce subsidies, the market could recover faster. Conversely, if the current monetary stance persists, the slowdown may ease only gradually. The data do not yet reveal whether such policy shifts will moderate the decline in new listings or reverse the price downturn.
As the market continues to adjust, stakeholders are watching closely for any changes in government policy or economic indicators that could shift buyer confidence. The extent to which the election’s results will influence the trajectory of property prices and sales activity remains an open question for both investors and home‑buyers alike.