Market Commentary – June 2025
Auckland Central Property Market Commentary – June 2025
Prepared by Chris Cairns | Cairns & Co – Ray White Auckland Central
Council Valuations: A Wake-Up or Just a Recalibration?
Momentum is quietly returning to New Zealand’s property market, with a steady lift in both buyer activity and seller confidence. After months of uncertainty, signs now point to a more balanced and active market environment.
Auctions Reignite Buyer Competition
Auction rooms have been a key source of market energy in recent weeks. Large-scale events have seen encouraging success rates, with around half of all properties selling under the hammer and many more securing deals shortly after. These results are not only boosting seller morale, they are also encouraging more buyers to act with confidence.
Open Homes See Sharp Uptick
Open homes are seeing a similar lift in engagement. The latest figures show a notable increase in attendance, with buyer visits climbing by more than 12 percent in May compared to April. Total visitor numbers rose by over 24 percent, suggesting buyers are returning in greater numbers as conditions continue to stabilise. First-home buyers are particularly active, supported by reduced mortgage test rates and easier access to lending.
Competition Strengthens Across Market Segments
Competitive bidding has also been a standout feature of recent auctions. Some events have attracted enormous interest, with hundreds of registered bidders competing for limited stock. Interestingly, this demand extends beyond traditional freehold properties. Leasehold apartments and other specialist segments have also performed strongly, showing that well-priced properties with clear value are attracting eager buyers.
Lower Rates and Lending Flexibility Fuel Market Activity
Several factors are driving this shift. Lending criteria have eased as mortgage test rates have fallen, giving buyers greater borrowing power. Interest rates have stabilised, and buyers now have more certainty around their purchasing power. At the same time, vendors are becoming more realistic in their pricing expectations, creating a more fluid market where deals are being done.
Council Valuations Trigger Questions
Adding another layer of interest, the updated Council Valuations (CVs) have recently landed. Many property owners have noticed significant drops. While these new figures can be confronting at first glance, it is important to understand what CVs actually represent and what they do not.
CVs are not market appraisals. They are calculated through a broad mass valuation exercise every three years, primarily based on land value, zoning, and market conditions as at March this year. They do not reflect specific property features such as presentation, condition, or buyer demand. A good way to think about them is similar to a Body Corporate’s unit entitlements. They are useful for setting rates but are not a true reflection of what a property could sell for in today’s market. For an accurate, up-to-date assessment of your property’s value, it is always worth arranging a personal market appraisal.
A Calmer, More Balanced Market Emerges
After years of dramatic peaks and troughs, the market appears to be entering a steadier phase. While values remain below historic highs, the overall mood is improving. Buyers and sellers alike are becoming more willing to engage, creating a healthier level of competition.
Looking ahead, the signs point to further growth in activity as the market moves towards the spring and summer months. With improved conditions and growing confidence, the next few months could prove to be an ideal window for both buyers and sellers to make their move.
Thinking ahead?
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