LJ Hooker Group Predicts Steady Property Market Improvement in 2025
Following a stagnant year for New Zealand’s property market, LJ Hooker Group Head of Network NZ Campbell Dunoon sees shoots of opportunity moving forward in 2025. Reflecting on 2024, the past year has been a period of necessary adjustment rather than downturn.
“This isn’t a market correction—it’s a healthy recalibration,” Dunoon said.
With the market poised for steady improvement, 2025 is expected to bring renewed confidence, balanced growth, and key opportunities for buyers and investors alike.
“While the frenzied buying conditions of past years, driven by fear of missing out (FOMO), are firmly behind us, the market is moving into a more balanced and sustainable phase,” Dunoon said.
“We’re expecting to see consistent growth in buyer activity across the country, with key pockets of opportunity emerging in regions such as the Bay of Plenty, Queenstown, Waikato, and areas within commuting distance of Auckland.”
Regional Highlights and Opportunities
The Bay of Plenty and Queenstown areas are poised for opportunistic growth in 2025, buoyed by their lifestyle appeal and continued infrastructure development. Similarly, Waikato and other regional areas near Auckland are becoming increasingly attractive to buyers seeking value and accessibility.
According to CoreLogic’s latest data, property prices in regional centres have not been consistent, with some seeing slight increases and others seeing declines over the past year. Queenstown’s high-end market continues to draw strong interest from both domestic and international buyers, pushing property prices up 2 percent year-on-year.
“These regions are well-positioned to benefit from both local and investor interest. We’re seeing a trend where affordability and lifestyle balance are driving movement into these areas,” Dunoon said.
Stability in the Rental Market
For renters, the outlook in 2025 is one of stability. Rental prices in major centres are expected to remain steady, providing consistency for tenants navigating the market. However, competition for rental properties may persist in high-demand areas as population growth continues to impact housing supply.
CoreLogic data shows that rental yields are different across the country, with Mataura (Gore) seeing the highest growth of 10.8 percent, while Whitford (Auckland) was down the bottom with 1.2 percent gross rental yields.
Confidence Among First Home Buyers and Investors
Dunoon expects increased confidence from both first home buyers and investors in 2025.
“First home buyers are stepping into the market with greater assurance, supported by declining interest rates, stable property prices, and improving economic conditions. The combination of reduced competition and more favourable buying conditions is giving them the confidence to act.”
CoreLogic data reveals that first home buyers now represent 27 percent of all market activity, the highest share in the past decade. Lower deposit requirements and improved lending conditions are key factors driving this resurgence.
For investors, New Zealand’s property market remains an attractive proposition.
“Despite regulatory changes in recent years, property remains a highly regarded asset class. Tax advantages and the current affordability of buy-in prices make 2025 an opportune time for investors to grow their portfolios.”
A Balanced and Sustainable Market
Looking ahead, the LJ Hooker Group anticipates a property market that is underpinned by long-term sustainability rather than short-term speculation.
“The days of reactive decision-making and rapid price spikes are behind us. The market is in a healthier position, with buyers and sellers able to make considered choices supported by stable economic conditions and improving confidence,” he said.
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