Seems strange to follow that with commentary around how Investors are rapidly finding momentum within the property market and are close to regaining their position as the largest group of buyers in the market.
Q1 2025: Owner occupiers / movers 26%. First home buyers 25%. Mortgaged investors 23%. Cash investors/ multiple property owners 14%.
What’s fuelling the investor revival?
- Lower mortgage rates – from over 7% to under 5%
- Lower deposits – from 35% to 30%
- Brightline tests shortened
- Mortgage deductibility restored.
- Investors report the lowering of their weekly ‘top-up’ from $400 to $200 which has made a considerable difference to their cashflow.
- Lower purchase prices are providing higher yields.
- Property is once again proving less volatile than alternatives such as shares and bonds.
New investors are also entering the market. “Mum and Dad investors. They now represent 8% of all activity – up from 6%. Multiple property “Mums and Dads” are also rising – from 4% to 6%. They are focussing more on existing homes. The preference for new builds is declining (from 30% in 2023 to 27% in 2025) as with the re-introduction of interest deductibility new builds no longer hold a major tax advantage.
The challenging economic climate here in New Zealand is clearly demonstrated is clearly illustrated when you look at mortgage arrears. These have now reached an 8 year high. (personal loans, buy now pay later schemes, retail energy and telco arrears are also on the rise).
23,700 home loans are in default.