Decoding: What the data says about New Zealand property
Every week brings a new set of numbers and forecasts. On release of our latest New Zealand Property Pulse, Mark Harris explains why an unusual alignment of information is giving us one of the clearest pictures of the market in some time. The New Zealand Sotheby’s International Realty Property MARK HARRIS Pulse Q2 2026 provides insights into the trends and developments affecting the New Zealand real estate market and, at the moment, it adds context to the broad range of property data real estate experts have at their disposal. REINZ figures, website and sales data all offer a different perspective on the market. Taken together, they reveal some remarkably consistent themes. NZSIR MANAGING DIRECTOR & CO-FOUNDER
Price resilience persists REINZ figures from May show national sales down 12.6% on a year ago. At first glance, those figures suggest a market that’s losing momentum. Yet lower sales volumes have not translated into lower prices. In May the national MAY NATIONAL median edged up 1.3% over MEDIAN SALE PRICE the year to $775,000, while the median time to sell held steady at 47 days.
1.3%
More activity is taking place at the upper end of the market: sales under $500,000 account for a smaller share than a year ago, while sales above $1 million now make up more than a quarter of all transactions. Several regions have recorded record median prices.
The lesson for vendors is simple: a quieter market is not a discount market. Well-presented homes, priced to meet the moment, are still selling and still achieving.
Quality and location matter more But those national figures don’t tell the whole story. Beneath them, a market is emerging in which quality and location are becoming the key differentiators. REINZ data shows the South Island leading the way, with Queenstown up more than 11% over the year and Canterbury reaching a record median on a 6.6% rise. Auckland is holding its ground, with its median price back above a million dollars, up 2.6% over the year. Our latest Property Pulse survey, drawing on insights from our agents nationwide, tells the same story from the ground. Queenstown remains the strongest read in the country, with no agents reporting falling prices. Christchurch is among the steadiest markets, while Waikato agents report a clear lift in buyer activity.
Prestige demand continues to build The prestige market provides perhaps the clearest example. While the wider market slowed, our own sales have moved in SALES ABOVE $5M the opposite direction. Year BY VOLUME to date, sales above $5 million are up by more than a third by volume. Importantly, this growth is not being driven by a handful of exceptional sales. More buyers are entering the prestige tier. Of the ten largest residential sales in New Zealand this year, seven are ours.
33%+
A portion of that demand is coming from overseas. In our latest Property Pulse survey, more than half of agents reported increased international enquiry since the Active Investor Plus visa changes, particularly in Auckland, Queenstown and the upper South Island. Australia and North America remain key buyer sources, alongside New Zealanders returning home.
At the very top of the market, enquiry is as strong as we have seen it. For many affluent international buyers, the uncertainty troubling much of the world is strengthening New Zealand’s appeal as a safe haven. So what is attracting these buyers? Our agents are remarkably consistent on this. Location remains the dominant factor, followed by water outlooks, quality of finish, and architectural character and privacy.
What the signals are telling us So where does that leave us? The market has slowed, but remains remarkably stable. It has become more selective. Quality, location and scarcity matter more than they did in a fast-moving market. For vendors, quality homes continue to sell well. For the wider market, the foundations appear firm. And at the prestige end, demand remains remarkably resilient. Viewed through every lens available to us – agent sentiment, transaction data, buyer enquiry and international demand – the conclusion is the same: the market is on stable footing, underpinned by selective demand for quality properties and desirable locations.
A new wave of interest in New Zealand’s lifestyle property
On paper, they have little in common. A family searching for more space. A couple returning from overseas. Downsizers entering their next chapter. International buyers discovering New Zealand for the first time. Yet they’re all helping drive one of the strongest trends DEMAND FOR to emerge from New Zealand LIFESTYLE PROPERTY Sotheby’s International Realty’s latest Property Pulse. Demand for lifestyle property has increased by 22 per cent since our previous survey, as a growing mix of buyers seek homes that offer more than just a place to live.
22%
The shift isn’t simply about lifestyle properties becoming more popular. It’s about lifestyle becoming one of the defining influences on how – and where – people choose to live.
Lifestyle means something different today While houses remain New Zealand’s most sought-after property type, lifestyle property recorded one of the largest increases in demand across the latest survey, rising from 37 per cent of agents identifying it as one of the most in-demand sectors in Q4 2025 to 45 per cent in Q2 2026. Another evolution emerging in the lifestyle market is the broadening definition of what buyers are looking for. While the classic rural block still holds enduring appeal, today’s lifestyle property could just as easily be
a coastal retreat, an architect-designed home on the urban fringe, a boutique vineyard or an equestrian estate. Increasingly, it’s not acreage that’s driving demand, but the opportunity to enjoy a different way of living. That demand is also becoming more geographically diverse. While destinations such as Queenstown, Wanaka, Cambridge, Havelock North, Nelson and the Kapiti Coast continue to be synonymous with lifestyle living, agents are also reporting growing interest across coastal Northland, Marlborough and parts of metropolitan Auckland. The common thread isn’t geography, but buyers seeking space, privacy, flexibility and a stronger connection to place.
A diverse mix of buyers is driving demand One of the strongest emerging buyer groups is returning New Zealanders. The latest Property Pulse recorded a significant increase in expat activity compared with our previous survey, reflecting renewed interest from Kiwis choosing to come home. For many, the appeal extends beyond the property itself to the lifestyle New Zealand offers – open space, outdoor recreation, strong communities and the opportunity to raise a family in an environment that feels increasingly rare on the global stage. International buyers are also beginning to play a larger role. More than half of surveyed agents reported increased enquiry following changes to the Active Investor Plus visa settings, with New Zealand’s stability, natural beauty and quality of life continuing to attract interest from overseas. Closer to home, changing family dynamics are creating another source of demand. Growing and multi‑generational families are looking for homes that
offer flexibility as life evolves – whether that’s room for children to play, dedicated work-from-home spaces, accommodation for grandparents or adult children, or simply enough space to bring everyone together. Lifestyle properties often provide the adaptability that modern family living increasingly demands.
Downsizing doesn’t always mean going smaller The survey also suggests today’s downsizers are redefining what the next move looks like. Rather than simply exchanging the family home for a townhouse or apartment, many are choosing to right-size into properties that better suit the next stage of life. That might mean a beautifully designed home on the edge of town, a boutique lifestyle holding or a coastal retreat with room for visiting children and grandchildren.
Lifestyle is shaping the next chapter of the market While each of these buyer groups arrives with different motivations, they’re united by a common priority. Rather than reacting to short-term market movements, they’re making considered decisions based on how they want to live over the coming decade. That broader shift is reflected throughout the latest Property Pulse, where location remains the single most important factor influencing purchasing decisions and buyers continue to take a more measured approach to finding the right property. For vendors, that’s an important insight. Buyers are increasingly responding to homes that offer more than bedrooms, bathrooms or land area. They’re looking for properties that tell a lifestyle story – one of flexibility, wellbeing, connection and longevity.
Downsizers: the buyers driving today’s market
There is an assumption that downsizers want something smaller, simpler and easier to look after. The reality is broader and more nuanced. Downsizers are the most active buyer group across our network, named by 63% of agents in our latest Property Pulse survey, and the most active group on the selling side. This group is shaping both sides of many transactions. They’re not searching for a traditional retirement home, but the home that best suits the next stage of life. For many people, this move isn’t about living with less. It’s about living better. Our agents see downsizers buying everything from lifestyle blocks to substantial standalone homes. Houses remain the clear preference, while demand for lifestyle property continues to rise. Independent research points the same way. A study of New Zealand homeowners aged 55 and over, commissioned by Squirrel, found 96% would consider a standalone home, while 94% say their ideal home for later life is single-level. The researchers coined a better term for the shift: life-sizing. People want to downsize the effort, not the life. Whether that means fewer stairs, less maintenance, a lock-and-leave property, or more land and better views depends entirely on the individual. What they have in common is that they’re making deliberate choices about how they want to live next.
“They’re often looking for less land and a smaller house, single level is key. And they’re really aware of future costs like rates, insurance, and having to pay people to do work around the house,” says Anne Rattray, Christchurch sales associate. Downsizers are not defined by age, wealth or a single buyer profile. Our data shows very different moves happening across the country. In Auckland, many are staying urban, exchanging larger family homes for smaller, well-located properties that keep them connected to the communities they know. In lifestyle and coastal destinations such as Havelock North, Napier, Nelson, Wanaka and Arrowtown, the move is about living differently, with outdoor space, scenery and a slower pace of life driving the decision. Wellington and Christchurch continue to see strong downsizer demand within established suburbs. What unites these buyers isn’t where they move, but why. Life-stage change was identified by 80% of agents as the leading reason people buy or sell, well ahead of financial factors. One finding challenges another common assumption. School zones remain a priority in around a third of downsizer markets. That suggests many buyers are still closely connected to family life, whether they have children at home, grandchildren nearby, or
simply want to remain part of the communities they’ve built over decades. According to Anne, “Most are staying local or moving to inner city, sometimes to be closer to family.” TOP FACTOR INFLUENCING BUYER CHOICE 84% OF NZSIR AGENTS NAME
Location
84%
Location leads, named by 84% of agents as the top factor influencing buyer choice, followed by the condition of the property. Downsizers are looking for the right neighbourhood, the right community and a home they can move straight into.
There is little appetite for renovation projects. Instead, buyers are seeking well-maintained homes that require minimal work, allowing them to focus on the lifestyle they are moving towards rather than the work waiting for them after settlement. Just as importantly, they’re prepared to wait. Downsizers are typically not driven by urgency or fear of missing out. They compare carefully, inspect thoroughly and move when they find a property that genuinely fits their needs. Townhouses and apartments certainly have their place, but they are not dominating wish lists. Houses remain the preferred property type by a wide margin, with lifestyle property emerging as one of the strongest growth areas. One of the defining characteristics of today’s downsizer market is patient, persistent demand. These buyers are active, but they are not rushed. Many already own property, understand the market and have the flexibility to wait until the right opportunity comes along.
Christchurch illustrates this particularly well. It has the highest concentration of downsizer activity in our network, while also remaining one of New Zealand’s steadiest markets for pricing. “They’re usually quicker operators to be fair. They typically have a deal wrapped up in a few weeks,” says Christchurch sales associate Matthew Rayner. “When downsizers make contact, they are quite focused and aware of what they want. The majority are generally local. They’ll not move on anything with potential problems, if there’s more work than they thought or something shows up in an inspection.” That measured approach has important implications for vendors. Downsizers are looking for confidence they’re making the right move. Realistic pricing from the outset, thoughtful presentation that helps them imagine living there, and a location that supports the lifestyle they want all help build that confidence. Get those fundamentals right, and downsizers are often among the market’s most committed buyers.
Who’s buying now? A closer look at today’s changing property buyer
Today’s market is giving buyers more time to make considered decisions. Those who are actively looking are focused, highly selective and clear about what they want – and ready to move when the right property comes along. Knowing who is most likely to buy your property, and what will make them act, matters increasingly in this environment. And there is no single picture of today’s property buyer: downsizers, upsizers and expats are all active, but are looking for different things. Based on insights from agents across the New Zealand Sotheby’s International Realty network, the latest Property Pulse reveals clear patterns in who is active, what different buyers value and what is likely to prompt them to act. When we compare our latest Q2 2026 Property Pulse with the survey from late last year, some clear shifts emerge in who is active in the market. Downsizers remain highly active, with 63% of agents DOWNSIZERS LEADING identifying them as a leading BUYER GROUP buyer group, unchanged from Q4 2025. Upsizers are also prominent, identified by 57% of agents. And expats are becoming more prominent, with almost double the proportion of agents identifying them as an active buyer group in Q2 compared with Q4 2025.
63%+
Together, those results point to a buyer pool increasingly shaped by life stage, relocation and changing lifestyle needs. Some buyers are looking for more space. Others are simplifying without wanting to compromise on location
or quality. For returning New Zealanders, the property decision connects to bigger choices about where to live and how to re-establish themselves. Among agents who identified downsizers as an active buyer group, 90% also reported location as a key influence on buyer choice. Just over half, 51%, identified property condition, while 38% cited lifestyle. That suggests downsizing is not necessarily about simply choosing something smaller. For many buyers in this stage of life, the style or scale of home may change, but the importance of where they live does not. Staying close to family, friends, established communities and valued amenities can remain a priority. For vendors, that is an important distinction. A property does not need to fit the traditional idea of a “downsizer home” to appeal to this market. While the mix of active buyers has shifted in some areas, upsizers have remained remarkably consistent. In Q2, 57% of agents identified upsizers as an active buyer group, compared with 55% in Q4 2025. And their priorities suggest that upsizing is about more than simply finding a larger home. Among agents seeing upsizers as active, 88% also identified location as an important factor, while property condition, lifestyle and school zones also featured strongly. For many, the move may be about finding a home that better fits the next stage of life - more space, but also the right location, amenity and quality. The rise in expat activity is one of the more notable changes in the latest survey. The proportion of agents identifying expats as an active buyer group has almost doubled since Q4 2025. Among those agents, 90% also identified location as a major influence on property choice, while 50% cited lifestyle, compared with 34% across the survey overall.
For expats, both location and lifestyle appear to be primary decision-drivers, suggesting a deliberate and intentional approach to choosing where to settle. That focus on lifestyle is also visible in the broader results. In Q2, 45% of agents identified lifestyle property as being in demand, up from 37% in Q4 2025. Houses remain the most widely sought property type across the network, but the rise in lifestyle demand suggests that for a growing group of buyers, the decision is not only about the property itself, but what that property enables. For vendors, this reinforces the importance of identifying and communicating the attributes that go beyond the floorplan. While buyers may be taking a more measured approach, they are not passive. Agents identified clear action triggers. Sharp pricing from launch - positioning your property competitively from day one - was cited by 62% of agents as likely to drive buyer action. Limited comparable stock was identified by 42%, while 37% pointed to urgency created by the selling method, such as auction or deadline sale.
Sharp pricing FROM LAUNCH IDENTIFIED AS DRIVING BUYER ACTION
62%
These three factors shape buyer behaviour more than any other. The challenge is knowing which levers matter most for a particular property and a particular buyer – and that is where experienced local market knowledge becomes critical.
A market holding its level
The New Zealand Property Pulse draws directly from our nationwide team of real estate specialists, to give a timely and nuanced read on buyer and seller behaviour. We asked our agents across the country to share their on-the-ground view of the past three months and their expectations for the next three. The insight we’ve gathered builds on the picture captured in our first agent survey in Q4 2025, showing us not just where the market sits today, but how it has moved and where it is heading. The story it tells is a measured one. The renewed market momentum of late 2025 and early 2026 has given way to a steadier market, as domestic economic conditions and global events keep buyers cautious. Activity has eased and buyers are serious but taking their time, yet the market is still transacting and holding its level. Where our first Pulse caught a market on the cusp of renewed momentum, this one finds it more measured. Agents describe buyers who are serious but unhurried, taking their time to find the right home, and vendors who are recalibrating their expectations to meet the market.
Stability & resilience
43% 61% OF AGENTS SAY PRICES ARE STABLE
EXPECT MARKET ACTIVITY TO REMAIN STABLE OR INCREASE
SOURCE: Q2 2026 NZSIR AGENT SURVEY
There is real resilience beneath the caution. The large portion of agents continue to report prices that are stable or rising, and almost half say vendor engagement has increased over the past three months, a sign that owners
are still actively preparing to come to market. The buyers who are active are serious ones, doing their homework and moving with confidence when the right home and the right price align. A fresh pool of expat and international buyers is also entering the market. In a steadier market, the fundamentals matter most. Realistic pricing and considered presentation are what deliver results. When asked how prices are moving in their area, agents were split between stability and mild softening. Stability was the most common response, reported by 43% of agents, the same proportion as in our first Pulse. A further 44% pointed to some easing, most describing it as slight. The wider data supports that picture. REINZ figures for May 2026 put the national median at $775,000, up 1.3% on a year earlier, and unchanged outside Auckland. Ten of the sixteen regions recorded annual price increases. Properties are taking a median of 46 days to sell nationally, only one day longer than a year ago. Taken together, agent sentiment and the market data tell the same story: prices have flattened rather than dropped, with conditions varying from region to region. More than anything, this is a life-stage driven market. Downsizers remain the most active buyer group, named by 63% of agents*. Upsizers follow closely at 57%, with first home buyers also well represented. These are segments reorganising their lives around a change in circumstances. The reasons behind their moves are tangible rather than speculative: downsizers right-sizing
Who’s active INVESTORS EXPATS
DOWNSIZERS
UPSIZERS
FIRST HOME BUYERS
SOURCE: Q2 2026 NZSIR AGENT SURVEY
into lifestyle residences, and families needing more room or a particular school zone. What stands out is the growing presence of expat and international buyers. Expats are now named as an active buyer group by 23% of agents, nearly double the share recorded six months ago. Alongside this, 53% of agents report an increase in international buyer enquiry since the Active Investor Plus visa changes. Two separate signals, pointing the same way: New Zealand is drawing renewed interest from buyers offshore and from those looking to return home. When we asked what is driving decisions, life-stage change led by a wide margin, named by 80% of agents.
Life stage leads
80%
OF AGENTS SAY LIFE-STAGE CHANGE IS THE MAIN REASON PEOPLE ARE MOVING*. SOURCE: Q2 2026 NZSIR AGENT SURVEY
Most people are moving because their circumstances have changed, not because the market has prompted them to. That helps explain the low sense of urgency. When a move is about how you want to live rather than when the market says to act, there is time to wait for the right home. The preferences agents are seeing reflect this life-stage focus. Standalone houses remain firmly in first place, named by 85% of agents*. The most notable movement is in lifestyle property, which has grown from 37% in Q4 to 45% this round, the one property type clearly gaining ground. Townhouse demand, by contrast, has fallen away. The pattern suggests that even active downsizers are looking for space and setting rather than simply a smaller footprint. Beyond the property itself, buyers are clear about what they value. Desirability of location leads at 84%*, followed by the condition of the property at 51%. Buyers want the right place, in the right community, in a home that is ready to live in. This Pulse asked, for the first time, what is most likely to move a buyer to act. The answer was clear, with sharp pricing from launch identified by 62% of agents*. We also asked when buyers are most likely to decide against a property. Nearly half, 46%, said at the first
viewing, with a further share deciding even earlier, online, before they set foot inside. Taken together, the message for sellers is direct. The combination of attractive pricing, a home in move-in condition and a strong location is what drives buyers to act. And because so many decisions are made at or before that first viewing, presentation is as important as price.
Priced to move
62%
OF AGENTS NAME SHARP PRICING FROM LAUNCH AS THE BIGGEST DRIVER OF BUYER ACTION.* SOURCE: Q2 2026 NZSIR AGENT SURVEY
The next three months Looking ahead, the Pulse points to a market that will continue at a measured pace rather than accelerate. For sellers, the opportunity is real but it is conditional. Buyers are active and prices are holding, but they are also selective. The homes achieving results are the ones priced sharply from the outset and presented at their best. Listing now means reaching the buyers who are ready today. For buyers, a steadier market means time to choose well. But the homes that tick the boxes most buyers are looking for, the right location, good condition, a setting that suits a change in life stage, are still attracting genuine interest, so therefore buyers must be prepared to act.
* Respondents could select more than one option so totals may exceed 100%
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