Market Commentary – May 2025
Auckland Central Property Market Commentary – May 2025
Prepared by Chris Cairns | Cairns & Co – Ray White Auckland Central
The Market Continues to Strengthen
Following encouraging signs in April, the Auckland Central apartment market has continued to firm through May. Interest rates continue to ease, buyer confidence is lifting, and Government policy is creating a more stable backdrop for both investors and owner-occupiers. While conditions remain measured, momentum is building — and sellers are starting to take advantage of the shift.
Confidence Rises Following May OCR Cut
As predicted, the Reserve Bank cut the Official Cash Rate by another 25 basis points at the end of May, bringing it to 3.25 percent. The move reflects ongoing confidence that inflation is trending in the right direction and gives a modest level of relief to borrowers.
Banks responded quickly, trimming a range of home loan rates. BNZ and Westpac both lowered fixed-term lending rates, with Westpac’s General Manager of Product, Sarah Hearn, noting that the cut “should give consumers confidence that cost pressures are continuing to ease.”
Budget 2025 Supports Market Stability
The 2025 Budget quietly reinforced the housing sector with a mix of long-term and immediate changes. A new Flexible Housing Fund has been introduced, consolidating a number of previous programmes into a single capital pool of $250 million over ten years. The aim is to deliver 650 to 900 new homes, beginning from July 2027.
Meanwhile, updates to the Accommodation Supplement thresholds will see more renters in areas like Auckland Central qualify for support, strengthening rental demand and improving investor confidence.
Finance Minister Nicola Willis described the Budget as one that “secures New Zealand’s economic and fiscal recovery and advances reforms to make New Zealanders better off in future.”
Local Activity Surges to End May
On the ground, we are seeing real signs of change. Buyer numbers are up at open homes. Conditional interest is giving way to clean offers. Apartments with light, views, balconies or car parks are drawing strong interest.
Ray White’s internal auction data for May shows a clear lift in activity, particularly in the sub 900,000 dollar range. A standout example came on 29 May with Ray White City Group’s “Auction Collection 2.0” event. Twenty Auckland Central properties were auctioned in a single day. Eleven sold under the hammer and most of the others are now under negotiation. It was a strong, public signal that demand is building again.
A Window of Opportunity for Sellers
While no one can time the market perfectly, the current conditions are more favourable than they have been in some time
Interest rates are easing, giving buyers more flexibility
Listing volumes are still low, meaning less competition
Government policy is providing stability without spooking buyers
Confidence is returning, and results are starting to reflect that
Thinking Ahead
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