Strong 2025 start for property market: NZ Mortgages
The new year has kicked off with remarkable momentum in the property market, mirroring the activity seen in late 2024.
Buyers and investors are maintaining their confidence, keeping the housing market as competitive as ever. For many, the new year represents an opportunity to achieve their property goals, whether that’s securing a first home, upgrading their lifestyle, or expanding their investment portfolio.
One of the key drivers of this ongoing activity is the anticipation of further reductions in interest rates. With the next Official Cash Rate (OCR) announcements from the Reserve Bank scheduled for February and April, market forecasts are optimistic about potential rate cuts. We are hoping to see the two and three-year rates below 4.9% in the coming months. These reductions could provide further relief for buyers and investors alike, making borrowing more affordable and fuelling continued interest in property purchases.
For property investors, 2025 presents a particularly exciting landscape. With interest deductibility fully restored and competitive lending rates expected to continue, we’re seeing a return of seasoned investors to the market. There is also a growing trend of purchasing existing properties over new builds, driven by larger section sizes offering subdivision potential and higher returns on investment.
The year ahead holds promise for first-home buyers too, but it comes with competition. Properties under $750,000 remain hotly contested, as first-home buyers and investors vie for opportunities in this segment. Acting quickly and being well-prepared with lending approvals will be key for buyers looking to secure their ideal property. As the market thrives, we’re excited to see how these trends unfold. With 2025 shaping up to be another strong year for property, now is the perfect time to get expert advice and make your move. Wishing you a very happy New Year from the whole NZ Mortgages team. We wish you all the best and hope you see success in your property and financial goals for 2025.
