Market Commentary - August 2025

Auckland Central Property Market Commentary – August 2025
Prepared by Chris Cairns | Cairns & Co - Ray White Auckland Central

Yes, the Reserve Bank trimmed the Official Cash Rate again this month, now sitting at 3 percent, but for me, this isn’t the biggest news…

While most banks had already moved ahead of the announcement, the result is the same: more room for buyers to stretch their borrowing, and that’s continuing to translate into activity. But for me, the bigger news was the Government’s announcement on relieving councils of their exposure to liability in defective building claims.

Liability Reform Signals a Shift in the Building Sector

The Government has confirmed that New Zealand will move away from joint and several liability and adopt a proportionate liability model. Under this system, each party involved in a development would be responsible only for their own share of the fault, rather than being jointly liable for the full cost of remediation if others cannot pay.

According to Prime Minister Christopher Luxon, this is about unlocking housing supply by removing barriers that have made councils reluctant to sign off on new developments. Building Minister Chris Penk reinforced the message, noting that the current model has created unnecessary cost and complexity, and acts as a deterrent for local authorities and developers alike.

In theory, this is good news for apartment owners and buyers too. If it becomes easier and less risky to bring good buildings to market, that should improve both supply and quality over time.

But we also believe this reform needs to be handled with care. Joint and several liability may have put strain on councils, but it did ensure there was always someone left to pick up the pieces. This safety net was especially important within the 10-year statutory window for building defect claims, where under the current law, a party like the council could be held fully responsible if others were no longer around.

If we move to a model of proportionate liability, there must be mechanisms in place to prevent owners being left exposed when a liable party cannot be found. The Government’s suggestion of mandatory indemnity insurance is a step in the right direction, but it must be robust, enforceable, and practical, especially if insurers are to take on the role of backstop.

We are all for cutting red tape, but we want to see clear protections put in place to ensure buyers and owners retain, at minimum, the same level of protection they have now. In fact, there is an opportunity to improve it, and we will be watching closely as this reform unfolds.

ICC Nearing Completion: Eyes on Short-Stay and Staff Housing

SkyCity has announced it expects to receive the keys to the New Zealand International Convention Centre by November, with an official opening still scheduled for February 2026. As we get closer, we anticipate a lift in investor demand for apartments within walking distance.

While short-stay accommodation will naturally benefit, don’t overlook the growing demand for long-term rentals from staff and support crews. Buildings offering flexible layouts, good access, and modern facilities are likely to see increasing attention.

Market Activity: Confidence Lifting Across Key Segments

We are seeing continued confidence in both fringe and central stock. Apartments under 38 square metres, leasehold titles, and those in remediation-affected buildings are still transacting steadily. As expected, these non-bank-friendly apartments continue to attract confident cash buyers, often with short settlement timeframes and firm terms.

At the same time, demand has remained solid for well-presented, owner-occupier-grade stock at most price points. Properties in the $1 million to $1.5 million range, particularly those with good layouts and presentation, are generating competitive interest.

Buyers still have the luxury of being selective, but with the reports we’re receiving from our mortgage broker colleagues, a wave of new buyers is entering the market. And with the Reserve Bank indicating that one or two more cuts may still come this year, this luxury of choice may not last much longer, tipping the market in more in the favor of sellers.

Spring is Here - Timing is Everything

If you’re considering selling, spring is already here and the early signs point to rising buyer activity. Getting your apartment on the market now, while stock levels are still building, could give you a strategic edge. Let’s talk about where your property sits in the current market and how we can position it to stand out.

Even if you are not planning to sell immediately, it is a smart time to understand your position. If you're curious about what your property might be worth in the current market, we’d be happy to provide a no-pressure, up-to-date appraisal:
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