Property market’s ‘longest and deepest downturn’ in 30 or 40 years
New Zealand's housing market is experiencing its deepest downturn in decades, with property values continuing to decline. Investors are increasingly cautious due to economic pressures and uncertainty regarding potential tax policy changes following the upcoming election.
Why it matters
The housing slump highlights broader economic instability and the impact of political uncertainty on investor behavior in the real estate sector.
NZ housing slump stretches to deepest downturn in decades, buyers hold power. Photo / RNZ
New Zealand’s housing market is going through the longest and deepest downturn in 30 or 40 years, property data firm Cotality says.
It has released its latest property market data, which shows a 0.3% fall in July, after a similar drop in June.
It reported a national median value of $804,303 in July, down 1% from three months ago and 0.7% lower than the same time last year.
Dunedin was up 0.2% in July, Christchurch was up 0.2% but Hamilton dropped 0.2%, Wellington fell 0.5%, Auckland was down 0.6% and Tauranga 0.7%.
Cotality’s data has shown that first-home buyers have been a record share of the market but investor activity has been more subdued.
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