LJ Hooker reacts to OCR announcement

LJ Hooker Head of Network NZ Campbell Dunoon

The Reserve Bank’s decision to lower the Official Cash Rate to 3.5% is a welcome signal for New Zealand’s property market, particularly as we see buyer confidence steadily rebuilding.

Our recent LJ Hooker research shows that despite affordability challenges, 89% of parents are open to helping their children enter the property market, reflecting a deep-seated cultural drive for homeownership that persists even in tougher times.

With CoreLogic’s latest House Price Index indicating pockets of price stability and realestate.co.nz reporting national stock levels at their highest since 2015—over 36,870 properties in March—this rate cut could encourage more buyers to act, especially in regions where stock is plentiful and prices have held firm.

It’s a clear opportunity for those who’ve been waiting on the sidelines.

This drop is a shot in the arm for a market that’s been cautiously finding its feet, and it could spark renewed urgency among buyers.

Our research also highlights how Kiwis are adapting to these changing conditions, with 33% open to co-ownership—rising to 45% among Gen Z—as a practical strategy to overcome high interest rates and deposit hurdles.

When you pair that with realestate.co.nz’s March data showing 11,000 new listings and a modest 2.6% year-on-year dip in national asking prices, lower borrowing costs could tip the scales for first-home buyers or investors, particularly in competitive regional markets.”