Source: Raine & Horne
Highlights
- Raine & Horne recorded a significant rise in listings and buyer activity in March 2025 across the country, signalling a strong property market rebound aligned with national price growth trends.
- Affordable prices, infrastructure investment, and coastal lifestyle appeal are driving renewed interest from both first-home buyers and investors, especially in Southland and Christchurch.
- Falling interest rates and more realistic vendor expectations have created a sweet spot for buyers, with quality homes around $850,000 in Tauranga and Mount Maunganui drawing strong demand.
Wellington, NZ (24 April 2025) The national property market is showing clear signs of recovery, with a significant uplift in listing activity and buyer engagement recorded by leading real estate network Raine & Horne.
New data reveals that Raine & Horne listings rose by 49% in March 2025 compared to December 2024, while open for inspections jumped by 175% over the same period. The uptick aligns with national trends, with CoreLogic reporting a +0.5% increase in property values in March, building on a +0.4% lift in February.
Angus Raine, Executive Chairman of Raine & Horne, said the renewed momentum reflects improving market sentiment, buoyed by earlier interest rate cuts and increased brand awareness.
“We’re pleased to see the property upturn beginning to take shape. The effects of OCR reductions always take time to filter through fully, but we’re starting to see confidence return,” Mr Raine said.
“While demand remains patchy across some regional and metropolitan areas, that’s to be expected in a recovering economy. The encouraging consensus is that residential property values are likely to rise by around 5% nationally this year, fuelled by more affordable finance and steady buyer demand.”
The return of investors is a big plus for Southland real estate
On the ground, Raine & Horne Southland Franchise Owner Sheree Williams confirmed that market activity is building strongly.
“Things are really starting to gain momentum here. Southland always moves to the beat of its own drum, and in the past few weeks we’ve definitely seen a noticeable upswing,” Mrs Williams said.
“There are more buyers actively looking, and importantly, we’re also seeing a strong return of investors to the market.”
Recent interest rate cuts are having an impact. “First-home buyers have remained a constant presence, but now investors are coming back with renewed confidence,” Mrs Williams said.
For instance, Mrs Williams noted that a solid three-bedroom home at 586 Tay Street, Hawthorndale[i], is generating strong interest from both investors and first-home buyers. “With the potential to earn approximately $500 per week in rent, it’s a smart option for savvy investors,” she said.
“However, it’s not all about investors. In many cases, first-home buyers are coming out ahead,” Mrs Williams added. “They’re more informed than ever, they know how to prepare financially, what steps to take, and how to position themselves competitively. So when it comes to going up against investors, they’re holding their own more than ever before.”
As for what’s attracting buyers to Southland, Mrs Williams said: “It’s definitely our affordability, hands down.
“Southland remains one of the most affordable regions in the country, which is a huge drawcard. But it’s not just the price point, there’s a lot happening here.
“We’ve got exciting new infrastructure projects underway that are drawing interest from outside the region. Combined with strong local employment across key industries such as healthcare, agriculture, and education, and an unbeatable lifestyle, it’s giving people real confidence to make the move and invest in Southland.”
Christchurch attracts buyers chasing coastal lifestyle and “bang for buck”
In Christchurch, Nick McIsaac-Luke, Franchise Owner at Raine & Horne Parklands, New Brighton, Shirley, Burwood, and Marshland, said the local property market has remained relatively steady. “We’ve seen a bit of a dip over the past couple of years, but right now, things are looking pretty solid,” he said.
Commenting on what’s driving demand, Mr McIsaac-Luke added, “I’m seeing more people from the North Island realising how good it is down here. Even people from the lower South Island are making the move. Everyone’s cottoning on to the fact you can get wicked bang for buck in Christchurch — you can live by the beach for under a million.”
To illustrate, Mr McIsaac-Luke and business partner Tina Lawson recently sold a stunning and spacious four-bedroom house at 1 Iti Place, Parklands. “This is a fantastic house that sold within four and a half weeks for $975,000.
Mr McIsaac-Luke said Parklands is proving especially popular with lifestyle seekers. “It’s probably one of the top spots right now for people wanting that laid-back lifestyle. We’re right on the edge of the forest, and the beach is just five minutes away — seven at a push.
“In Auckland or Wellington, this would literally be a $1.8 million house — maybe more,” Mr McIsaac-Luke said. “We’re seeing buyers from those cities thinking, ‘We’re sitting on a $2 million home — let’s sell up, move to Christchurch, get relocated by our employer or work remotely, buy a million-dollar mansion, and still have money left in the bank or buying a rental or two on the side.’”
Confidence returns to Bay of Plenty as rates fall and vendors meet the market
In the Bay of Plenty region, Paul Billinghurst, Principal of Raine & Horne Mount Maunganui, Tauranga, Katikati, Waihi Beach, and Waihi, said there’s been a clear uplift in market activity over the past six months.
“People have been more open to transacting. Buyers have responded well since the Reserve Bank began cutting the official cash rate (OCR) and are less spooked by high interest rates,” Mr Billinghurst said.
“The commentary suggesting prices have bottomed out has also encouraged buyers to act. They see it as a buyers’ market and are coming in confidently.”
On the flip side, Mr Billinghurst stated that many vendors have moved on from waiting for post-COVID price peaks to return and are now more prepared to meet the market.
Mr Billinghurst said, “Vendors are recognising the heady days of 2021 are long past, as are the prices being achieved back then.
“If owners are selling and buying in the same market, they are more willing to accept a lower market price on their current property and pay a lower market price for their new one to be able to move forward.”
In Tauranga and Mount Maunganui, Mr Billinghurst said that quality properties around $850,00 were in the sweet spot for many buyers.
“We have a lot of first home buyers really active, up to $850,000, who are snapping up quality properties in Tauranga and Mount Maunganui.
Outside of any geopolitical risks, such as potential US tariffs, Mr Billinghurst believes the Bay of Plenty market is poised for a strong finish to 2025.
“We’re on track for a really solid and stable market over the final three quarters of the year,” he said. “It’s shaping up to be a return to more normal conditions.”
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