After a subdued period, national property sales finished 2025 on a stronger note. December sales volumes were noticeably higher than a year earlier, signalling that buyer confidence is slowly rebuilding as borrowing conditions ease.

While the recovery remains uneven across the country, the overall trend suggests the market has moved out of its weakest phase.

Sales Volumes Show Solid Annual Growth

Across New Zealand, property sales over the past 12 months were up 9.2% compared with the same period a year earlier. This marks a meaningful turnaround after the temporary slowdown seen in November.

The rebound helped lift total annual sales for 2025 to around 90,300 transactions, confirming that demand has stabilised.

Main Centres Still Lagging

Sales activity in the main centres increased by 5.9% over the year — positive, but noticeably weaker than the national average.

Higher prices, elevated listings, and more cautious buyers have kept activity softer in Auckland and Wellington, even as mortgage rates have come down.

Provincial Markets Leading the Recovery

The strongest growth continues to come from outside the main centres. Sales across the rest of New Zealand rose by 14.5% over the past year.

Lower price points, tighter supply, and steadier local demand have helped regional towns and cities outperform, drawing buyers who are either priced out of larger centres or looking for better value.

Monthly Sales Point to Stabilisation

The 12-month moving average of monthly sales shows activity gradually lifting rather than spiking. This suggests the recovery is being driven by improving fundamentals rather than speculative behaviour.

Lower mortgage rates and improved affordability appear to be translating into steady, sustainable demand.

What’s Driving the Improvement

• Mortgage rates easing from recent highs
• Improved affordability following price corrections
• First home buyers remaining active
• Growing confidence outside the main centres

Together, these factors are supporting sales volumes even while price growth remains modest.

The big takeaway

National property sales are trending upward again, led by regional markets rather than the main centres. While recovery remains gradual, the lift in activity suggests confidence is returning as borrowing conditions improve.

If current trends continue, sales growth is likely to strengthen further through 2026 — particularly outside the largest cities.

Source: Cotality – NZ Monthly Housing Chart Pack, February 2026