Source: Cotality (formerly CoreLogic)
New Zealand’s residential property market remained broadly steady in the March quarter, with the average seller pocketing $280,000, according to Cotality’s latest Pain and Gain Report.
The share of resales made at a gross profit in Q1 2025 was 90.8%, easing only slightly from 91.1% in the previous quarter. While still below the post-pandemic high when 99% of resales delivered a profit, the data suggests the market has stabilised.
“The figures for the March quarter tell a story of resilience,” said Kelvin Davidson, Chief Property Economist for Cotality NZ (formerly CoreLogic).
“Despite house prices still sitting about 16% below their early 2022 peak, most property owners are continuing to sell for a profit – especially those with longer ownership periods.”
“Despite house prices still sitting about 16% below their early 2022 peak, most property owners are continuing to sell for a profit – especially those with longer ownership periods.”
The median gross profit on resales was $280,000 in Q1, down from $298,000 in Q4 2024 and the Q4 2021 record of $440,000, but still well above levels seen prior to the pandemic. In contrast, the median resale loss decreased slightly to $50,000, continuing a three-year trend of relative stability in the $50,000–$60,000 range.
“Longer hold periods remain key,” Mr Davidson said.
“A typical property resold for a profit in the first quarter of 2025 had been owned for 9.1 years. That’s unchanged from the prior quarter and underscores how time in the market generally shields owners from volatility.”
“A typical property resold for a profit in the first quarter of 2025 had been owned for 9.1 years. That’s unchanged from the prior quarter and underscores how time in the market generally shields owners from volatility.”
Investors show no signs of rushing for the exits
Despite commentary that investor-owned properties may be under pressure, the report found no evidence of widespread distress selling.
Mr Davidson noted that, “Lower mortgage rates are helping support investor cashflows. We’re not seeing any sign of fire-sale exits.”
Across owner-occupiers and investors alike, those who had held properties for shorter periods – especially 2 to 3 years – were more likely to record losses.
The median hold period for loss-making resales was 3.3 years in Q1, up from 3.0 years in the December quarter and a sharp rise from just 1.2 years in mid-2022.
Apartments under pressure, but no panic
The likelihood of a resale loss continues to vary by property type.
In Q1 2025, just 8.4% of houses resold at a loss, compared to 32.8% of apartments. While that is an increase for apartments from 28.6% in Q4 2024, the data does not indicate a rush to offload.
In Q1 2025, just 8.4% of houses resold at a loss, compared to 32.8% of apartments. While that is an increase for apartments from 28.6% in Q4 2024, the data does not indicate a rush to offload.
“There’s no evidence that apartment owners are abandoning the market en masse,” Mr Davidson said.
“Loss-making sales of apartments might tend to reflect unexpected personal changes such as family issues, rather than widespread market retreat.”
The median loss on apartment resales was $63,000 in Q1, compared to $49,000 for houses. Meanwhile, the median resale profit was $128,000 for apartments and $280,000 for houses – broadly in line with historical trends reflecting the lower entry price of apartments.
Looking ahead: slow and steady gains
While the abundance of property listings and a soft labour market are likely to weigh on prices in the near term, Cotality expects that lower interest rates will lend gradual support.
“We’re not anticipating a sharp rebound,” Mr Davidson said. “But conditions are in place for a slow and steady uplift in values, which should continue to support profitability for resellers over the remainder of 2025.”
