WATCH: Perspectives Property Report August 2025

Welcome to the August Perspectives real estate market report, I’m Mark Harris.  

This month, we take stock of how the property market has moved so far in 2025 and look at the sales data to understand what the long-term signals are pointing to.

We’re now well into the second half of the year, and while the pace has been steady rather than sharp, the market fundamentals are laying the groundwork for what’s next.

National prices are currently sitting about 15% below their quarter 3 2021 peak and are up just 1.3% since June last year.  

The OCR has dropped to 3.25% over the past year, and inflation is largely under control. But confidence – both among consumers and the market – is still finding its feet.

So the re-bound is a little slower than some anticipated. But beneath the surface, momentum is building.

Interestingly, that coming in the form of regional divergence, with some areas showing quiet strength and outstripping the average national performance.

Hawke’s Bay and Northland saw price gains of over 2% in the last quarter alone. Nelson is a standout – up 8.1% year on year. And Queenstown remains resilient, with prices lifting nearly 2% quarter-on-quarter.

Wellington and Auckland were softer, but even there, buyers are beginning to return. 
First-home buyers are stepping up – they now make up over a quarter of all purchasers this year, and more than a third in Wellington. Why? Prices are lower, supply is better, LVRs have eased, and KiwiSaver is doing some heavy lifting.

Investors are also quietly re-entering. Multiple property owners made up 23% of Q2 purchases – up year on year, but still below long-term averages.

With geopolitical uncertainty offshore, New Zealand is once again seen as a safe haven  and overseas interest remains high. The coalition government has indicated that foreign buyer rules will likely be loosened before the end of the year – a move that could further stimulate high-end demand, particularly in key lifestyle regions.  

So while we’re not in boom territory, we are on stable ground. And in real estate, stability is often the first step to growth and sets us up for a positive run into the end of year.

Here’s a look at a few properties currently making headlines:

• Chosen for the same reasons that first drew Queenstown’s founders to this part of Kelvin Heights, 5 Old Homestead Place enjoys a sunny, sheltered position with direct lake access and breathtaking natural beauty. The brand-new home is finished with a soft luxurious style that takes nothing away from the sweeping mountain and lake views.  
• 10A Cremorne Street is a statement home in one of Auckland’s most exclusive coastal suburbs - Herne Bay. The elegant, light-filled residence blends contemporary design with central city living and is minutes from the water.
• An extraordinary lifestyle set in the Central Otago alpine landscape is on offer at 633 Mount Barker Road, Wanaka. The rammed-earth home sits on an elevated terrace with dramatic mountain and lake views from every window.  

And just as compelling are the results we’ve achieved for vendors across the country.

• Set in Glentui Heights, a bespoke subdivision near Queenstown, this architecturally designed home impressed potential buyers with high-end finishes and thoughtful craftsmanship, achieving a strong result after a competitive campaign.
• This commanding riverside estate located in Tamahere, offering over 590sqm of living on 8,000sqm of land, captivated buyers with its sweeping lawns, resort-style pool, and panoramic Waikato River views. A standout result in one of the region’s most sought-after lifestyle pockets.
• Now sold is 1278 Kaiwhata Road, Homewood, Masterton, a grand 61-hectare estate blending historic charm with lifestyle potential. Surrounded by native bush, the remarkable Wairarapa property offered the rare combination of character, scale and future opportunity.

Thanks for watching.