New Zealand's property market over the past year has been shaped by fluctuating economic indicators, shifting buyer behaviours, and evolving market dynamics. As of April 2025, residential property sales were up 9.5% year-on-year, suggesting increasing buyer activity despite ongoing caution. These figures reflect a market in transition, where demand is rebounding yet tempered by broader economic concerns, including interest rates and employment stability.

Real Estate Institute of New Zealand (REINZ) data reveals some volatility in listing volumes. January 2025 saw a 21.2% year-on-year increase in new listings, but this was followed by an 11.6% drop in April compared to the same month in 2024. This uneven supply landscape adds complexity for agents, buyers, and sellers alike, particularly in urban centres such as Auckland, where the pace of transactions remains measured.

The New Zealand property sector is no longer buoyed by the surge seen during the peak of the COVID-19 era. Instead, it is now characterised by a buyer’s market—conditions where purchasers have more negotiating power, prompting downward pressure on prices and extended sale timelines. This evolving environment demands greater flexibility, clear client communication, and a keen awareness of current market trends from real estate professionals.

“It’s a buyer’s market… the largest impact on salespeople is that we’ve had to adapt swiftly.”

Peta Seaman, Managing Director at Edge Recruitment SA, spoke with Ella Mills, Residential Sales Real Estate professional at Barfoot & Thompson, about the recent challenges and developments shaping the New Zealand property market.

Mills observed: “Over the past twelve months, I have observed significant changes in New Zealand property sector.” These changes have been largely driven by economic uncertainty and interest rate fluctuations. Yet despite these conditions, she noted, “The number of properties that we've sold in New Zealand actually rose 9.5% for April 2025 compared to April 2024.” This increase in activity reflects a measured resurgence in buyer confidence.

However, buyers are far more cautious than during the pandemic boom. “It’s all about educating the clients,” Mills explained, noting the importance of aligning expectations with current market conditions. “We’re no longer in the peak of the COVID era… prices were skyrocketing,” she added, referencing the emotional and financial shift for many participants in the market.

This transition to a buyer’s market has intensified the need for strategic negotiation and relationship-building. Mills emphasised that many clients are grappling with financial pressures, especially those who purchased at peak prices and now face reduced valuations. “It does put financial strain on people,” she said, underlining the emotional and monetary toll this has taken.

REINZ figures further illustrate the volatility agents must navigate. While January showed a significant increase in listings, April saw a sharp drop of 11.6% compared to the previous year. This inconsistency in supply creates uncertainty and demands that agents remain agile in managing both listings and buyer demand.

For Mills and her team, one of the most challenging aspects has been managing buyer and seller expectations: “Navigating buyer and seller expectations is challenging, also rewarding.” The ability to educate clients and have frank discussions has become central to her role, especially as the market adjusts from the inflated prices and urgency of past years.

Despite these pressures, Mills remains optimistic: “You continually learn and you have to jump on those opportunities as they arise.” This adaptive mindset is crucial in a climate where long-held assumptions about pricing, timing, and competition have shifted significantly.

Real estate professionals must now double down on education, transparency, and trust-building. With buyers taking more time to evaluate options and a reduced sense of urgency in transactions, fostering long-term relationships becomes more valuable than quick wins.

Practical Takeaways for Property Professionals in New Zealand

• Ensure clients are well-informed about current market trends to align expectations and facilitate smoother negotiations.

• Prepare for listing volatility by adjusting sales strategies to respond quickly to both supply surges and dips.

• Nurture client relationships through transparency and consistent communication, especially for those under financial stress.

• Emphasise adaptability and continuous learning to thrive in an uncertain economic and market environment.



• Understand the emotional and financial realities faced by clients post-COVID to better support them through the sales process.