Market Report.
APARTMENT & RESIDENTIAL
Part of the group with a family factor. MARCH 2025
CITY REALTY GROUP CREATE RECOGNISE GROW
04.
Market CommentMarket Warming Up, But Brakes Not Fully Off Yet
10.
Grafton & Eden Terrace Sales & Statistics - February 2025
18.
Article – Tony Alexander: What Adrian Orr’s shock resignation means for homeowners and interest rates
24.
Article – Kelvin Davidson: Will the new Reserve Bank governor stick to the plan on interest rate cuts?
28. Property Management
The annual student migration is upon us! So what better time to discuss...
06.
Auckland Central Sales & Statistics - February 2025
16. Case Study & Auction Update with Cameron Brain
20.
Our month in Review Top Stories & Events from the City Realty Group
26.
LoanMarket Update: Timing Your Refix: What You Need to Know.
32. Our Awards & Accolades Ray White Auckland Central & Wynyard Quarter
Market Warming Up, But Brakes Not Fully Off Yet.
“Despite recent OCR cuts, with more anticipated in coming months, it would appear the economic recovery has not quite gained the momentum many expected,” says Daniel Horrobin, Director of City Realty Group.
While rate drops have sparked optimism, many are still waiting for that to translate into stronger economic activity.
Economist and commentator Tony Alexander observed: “In the middle of last year, a net 42% of my respondents said they would cut back their spending on things generally in the next 3–6 months. That improved to a net 10% planning to spend more come the December survey and evidence of falling borrowing costs. But my first survey for the year in February showed a net 10% of consumers planning to cut spending and that has just worsened to a net 15% planning cutbacks. For retailers, the outlook as we head through autumn into winter is still one of constrained customer flows.”
However, there are some encouraging signs. Alexander also noted: “Only 37% of agents have reported that buyers are worried about access to finance. This is the lowest reading on record and backs up the evidence of competition between banks heating up revealed in some recent discounting of fixed lending rates out to three years.”
Investor confidence is also beginning to reemerge. The NZ Herald’s headline on 28 February boldly declared, “Investors are back,” helped by the return of 100% interest deductibility for investors from 1 April 2025.
“We remain optimistic in the city that this, along with diminishing deposit returns due to
falling loan interest rates, will encourage new investment in our apartment market,” adds Daniel.
There is also more choice for buyers than we’ve seen in some time. “The amount of stock for sale in the central city continues to creep up,” says Daniel, “with numbers approaching the mid-600s — the healthiest we’ve seen for a while.”
This aligns with national trends. The Real Estate Institute reports February had more homes for sale than any February in the past decade.
Tony Alexander, in his early March update, also stated: “In this month’s survey a net 68% of agents said that more potential sellers are asking them for property appraisals. This is the second highest reading in almost five years and tells us that strong listings stocks are set to continue.”
Real Estate Institute of NZ acting chief executive Rowan Dixon echoed the positive shift, noting: “Sales have increased nationally year-on-year and activity is ramping up but buyers were not in a rush to purchase. Attendance at open homes remains strong, and auction numbers are comparable to those in February 2024. These are encouraging signs for a positive and confident market ahead.”
“Hopefully another couple of OCR cuts might speed things up,” says Daniel.
“The Real Estate Institute reports February had more homes for sale than any February in the past decade.”
Auckland Central Market Statistics.
Total Sales
February 2025
53
February 2024
There was a -50% decrease in the total number of sales year on year.
Total Sales Value Median Sales Price Median Days On Market
February 2025
$20,552,738
February 2024
February 2025
$337,500
February 2024
107 $55,064,650 $315,000
There was a -62% decrease in the total sales value year on year.
Source: REINZ
There was a +7% increase in the total median sale price year on year.
February 2025
90
February 2024
51
There was a +99% increase in the total median days on market year on year.
Recent Sales.
Eden Terrace
EDEN TERRACE MARKET STATISTICS. FEB 2025 6
EDEN TERRACE - RECENT SALES.
Source: REINZ
GRAFTON MARKET STATISTICS.
11 FEB 2025 Total Sales Median Sale Price FEB 2025
RECENT SALES
$3,797,250 Total Sales Value
$198,000 FEB 2025 FEB 2025
33 Median Days on Market
GRAFTON - RECENT SALES.
STATEMENT:
Ray White repeatedly achieves higher sales prices than other agencies, and it’s not just our claim— here are the facts:
301/83 Halsey Street, ‘Lighter Quay’
1 1 0
SOLD WITH RAY WHITE
Sale Price: $150,000 + GST
($172,500 incl GST)
Sale Date: 24th of October 2024
201/83 Halsey Street, ‘Lighter Quay’
1 1 0
SOLD BY ANOTHER AGENCY
Sale Price: $50,000
Sale Date: 6th November 2024
* IMPORTANT NOTE: Both units are identical with just one floor level separating them, yet Ray White sold for $122,500 more than the other agency.
Request an appraisal today.
Ray White Auckland Central is your home for apartments.
305/8 Ronayne Street, ‘The Landings’
SOLD WITH RAY WHITE
Sale Price: $157,500
Sale Date: 1st August 2024
* IMPORTANT NOTE:
803/8 Ronayne Street, ‘The Landings’
SOLD BY ANOTHER AGENCY
Sale Price: $105,300
Sale Date: 7th August 2024
The unit sold by the other agency included a car park, yet it still sold for $52,200 less than the price Ray White achieved for a property without a car park.
110/8 Ronayne Street, ‘The Landings’
SOLD WITH RAY WHITE
Sale Price: $135,000
Sale Date: 12th September 2024
* IMPORTANT NOTE:
205/8 Ronayne Street, ‘The Landings’
SOLD BY ANOTHER AGENCY
Sale Price: $116,500
Sale Date: 21st August 2024
The unit sold by the other agency included a car park, yet it still sold for $18,500 less than the price Ray White achieved for a property without a car park.
There’s an old saying: “You get what you pay for.”
In these case studies, maybe saving a little on commission upfront led to a significantly higher loss in the end.
List with Ray White for the best results and more money in your pocket. And if fees are a concern for you - let’s talk.
Total Number of Properties Listed 1120
Total Number of Auction Properties 248 % of Auction Properties Listed 22.14%
Success Rate: 66.22%
Total Number of Sales for 2024 528
Total Sales Value
$325.7M
Total number of Auctions Sold in 2024 296 56% of all sales in 2024 were as a result of an Auction
Total Auction Sales Value
$179.2M 55% of the Total Sales Value was as a result of an Auction Sale
*Rounded to nearest $100,000 *Rounded to nearest $100,000
City Realty Group Auction Report.
Our auction results so far this year highlight strong buyer engagement, competitive bidding, and excellent clearance rates. With demand remaining steady and market conditions favoring well-presented properties, we continue to see positive outcomes for both sellers and buyers alike.
A key trend emerging in Q1 is the growing preference for transparent sales methods, with auctions offering a clear and competitive platform that drives genuine market value. The combination of professional marketing, strategic campaign management, and expert auctioneering has been instrumental in delivering strong results for our clients.
As we approach the end of the first quarter of 2025, City Realty Group is set to conclude the quarter with an impressive 127 auctions across our network. This milestone is a testament to the continued strength of the auction market and the confidence sellers have in the process. If you would like to discuss the auction process or explore upcoming opportunities, reach out to the City Realty Group team today.
Looking ahead, we anticipate further momentum as we move into the second quarter, with a robust pipeline of properties scheduled for auction. Our team remains committed to delivering outstanding results and ensuring that our clients benefit from the power of auction.
For those considering an auction in 2025, now is the time to engage with our experienced team. With market dynamics evolving, a wellexecuted auction strategy remains one of the most effective ways to achieve premium outcomes.
Tony Alexander: What Adrian Orr’s shock resignation means for homeowners and interest rates
The Reserve Bank of New Zealand governor is calling it quits after seven years.
ANALYSIS: Many people in the business sector along with many homeowners have for the past three years blamed the outgoing Reserve Bank Governor Adrian Orr for their cash flow woes. They are both right and wrong.
They are right in that he oversaw the continuation of excessively loose monetary conditions during 2021 into 2022, which over-stimulated our economy and pushed inflation to a peak of 7.3%. He then oversaw the rise in the cash rate to 5.5% come May 2023, which eventually generated enough weakness to push inflation down to 2.2% by crunching the economy.
They are right also in that he oversaw the largest collection of economists in the country who failed to see how weak they were making the economy last year. We now know that weakness amounted to 1.1% shrinkage in the June quarter and 1% in the September quarter.
But they are wrong in thinking that he bears sole blame for over 7% inflation. The Labour Government’s Finance Minister kept fiscal policy so loose and stimulatory that government debt surged 84% in just six years. Their excessive spending stimulated growth, helped push the unemployment rate to an unsustainably low level, and helped drive high inflation.
First-home buyers have been strong in the market compared to other buyer groups. Will the cut to the OCR encourage more action? Photo / Fiona Goodall
Global supply chain disruptions outside our control also played a strong role in pushing inflation to 7.3%. The monopolistic and oligopolistic nature of many key sectors in New Zealand also bears some blame for the high inflation.
On balance, the failure to recognise the economy’s upturn in 2021 and the failure to recognise its weakness last year will taint Adrian Orr’s legacy as governor. But will his departure mean better times for businesses and homeowners now? No.
The Reserve Bank has recently reacted to the new knowledge of extreme weakness last year by speeding up its policy easing.
There seems no justification for expecting that the widely predicted low-point for the Official Cash Rate of 3.0% - 3.25% later this year will shift lower – especially because policy is determined these days by a committee and not just one person.
But one suspects the Reserve Bank’s ability to work with a reforming government may be improved, and perhaps the focus will be less antagonistically on wellbeing and other issues and more on the actual economy –hopefully from here on with some more up to date and accurate analysis.
- Tony Alexander is an independent economics commentator. Additional commentary from him can be found at www.tonyalexander.nz
@raywhiteaucklandcentral
@raywhitewynyardquarter
@raywhitesandringham
@raywhite.mtroskill
We’ve been putting our best foot forward...
Together, our CRG Group has raised over $6,000 towards the Ronald McDonald House to House Appeal.
All CRG office’s held a morning tea to raise funds towards this much needed cause.
Why we’re doing it : Families with a child in hospital travel 210km, from their house to a Ronald McDonald House®. This March, our team is getting active to help keep families together at RMHC® NZ, when they need it most.
But there can only be one
winner!
Congratulations to Ray White Auckland Central who took home the CRG Cup from this years Real Estate of Origin
Let’s Ruck & Roll!
It’s that time again—Real Estate of Origin is here and the Ray White teams at Wynyard Quarter, Auckland Central, Sandringham, and Mt Roskill all hit the phones, joining offices across the country in a massive prospecting push!
For four relentless hours, agents across Australia and New Zealand were in the ultimate real estate knockout challenge, racing to rack up appraisals faster than a property in a hot market.
Place your bids... Going Once, Going Twice... SOLD!
Our Auction business is full steam ahead with in room Auctions held weekly at our offices.
Pictured: (Top Right) A full house at our regular Thursday midday Auction call at Ray White Auckland Central. (Right) Featuring a nice full room in our Ray White Sandringham Auction room.
Welcome to the family!
Tyler enjoyed a visit to Ray White Wynyard Quarter with his mum Gabi.
Kelvin Davidson: Will the new Reserve Bank governor stick to the plan on interest rate cuts?
The five things you need to know about the housing market this week.
1. Adrian Orr resigns
Adrian Orr’s resignation on Wednesday was certainly a surprise. I’m not wading into the debate playing out online on his performance as Governor of the Reserve Bank of New Zealand. The bottom line is inflation is back within its target range and the economy is showing signs of life. Anyone would take that as a win.
What’s more interesting is the “what happens next” stuff. Will the new governor do anything differently to what Orr (and the committee) might have done anyway? Hard to predict, although I doubt the new team at the top will deviate too much from the plan to cut the Official Cash Rate (OCR) further in the next two to three months.
One thing to keep an eye on are the LVR and DTI rules. Will the new governor
change them? The settings for both have an impact on buying activity. Watch this space.
2. Are inflation dangers still lurking?
Back in 2022, annual inflation hit a high of 7.3%. A run of interest rate hikes has seen inflation fall to 2.2% in the last quarter of 2024. We won’t get the hard numbers for the first quarter of 2025 until April 17, but Stats NZ will on Friday release the monthly selected price indexes for February (covering 45% of the benchmark quarterly CPI). The figures will probably show that inflation pressures generally remain under control. But with the Reserve Bank wary of a risk that short-term price gauges tick up a bit (due to the lower exchange rate and higher imported prices), the monthly data is still one to watch closely.
Further cuts to home loan rates are on the cards following the Reserve Bank’s revised forecast for the Official Cash Rate. Photo / Alex Burton
3. The calm before the longer-fixing storm?
My data-watching highlight will, however, come later today, with the RBNZ’s mortgage lending figures for January to show what loan terms new borrowers are choosing and what existing homeowners are doing with their mortgages (top-up or switching banks). This month, it’ll probably be “more of the same”, with a focus on floating or short-term fixed rates in the 6-12 month horizon. The next data in early April could show the start of a muchdiscussed switch from borrowers (both new and existing) back towards longer terms again.
4. Migration trend is flattening out?
Stats NZ will release January’s migration stats on Thursday, which for a long time have been trending lower in net terms, as arrivals have fallen and departures have stayed high – this has taken the heat out of property rents. But there have been hints in the most recent migration data that the trend might be flattening out at around normal levels. One to keep an eye on.
5. The house price downturn is (probably) over
Finally, CoreLogic’s Home Value Index showed a 0.3% monthly rise in median property values across the country in February, the first meaningful increase since January last year. Christchurch and Dunedin were up 0.6%, Hamilton 0.5%, Auckland 0.3%, and even the previouslyweak Wellington market avoided a fall, with a minor 0.1% rise.
To be fair, there are still restraints out there for house prices, including the abundance of available listings on the market and also the lurking effects of DTI restrictions for mortgage lending. But with interest rates having fallen significantly, there seems every chance that property values will now rise again on a more consistent basis in 2025.
Two points to note, however. First, not everyone will get good vibes from that outlook – after all, prospective buyers would want values to fall further or stay flat at worst. And second, ‘consistent’ is not the same as rapid growth. Indeed, the balance of probability suggests this next rising phase for property values could be much more subdued than in the past, especially if the Government is successful with its plethora of new land/housing supply policies.
CoreLogic chief economist Kelvin Davidson: “Look for more OCR cuts over the coming months.” Photo / Peter Meecham
027 742 5227
jamie.maclennan@loanmarket.co.nz Jamie Maclennan
Timing Your Refix: What You Need to Know.
Your refix, or settlement date is approaching, and you may be starting to wonder what fixed-term rate to take. The following is not specific advice but a general overview of market conditions.
We are currently recommending a mixture of short- and long-term rates for clients. Depending on the size of your mortgage and your appetite for risk, it could be worth splitting your mortgage to mitigate future risk. For example, a client with a $600,000 mortgage we are recommending putting. $300,000 on a 6-month rate and $300,000 on a 2 or 3 year rate. Here’s some information to illustrate why we are looking at these rates more favourably.
Interest rates have significantly increased from the lows of 2021 off the back of consistent Official Cash Rate (OCR) increases combating inflation and the wholesale cost of funds offshore increasing. The main driver in the OCR staying high was our inflation rate. The reserve bank requires inflation to be between 1 – 3%. The good news is the most recent data on 22nd Jan see’s the inflation rate at 2.2% which is in the acceptable levels.
Even better news is from the latest OCR announcement on the 19th of Feb where the reserve bank dropped the official cash rate by 0.50%.
There is another OCR on the 9th April where it is expected to drop again (potentially only by 0.25%). The talk now is when to start looking at fixing for longer term.
There is talk from some economist that sometime late into 2025 you might want to investigate longer term rates. Therefore, this is why we are recommending putting some of your mortgage on a long-term rate sooner than later.
When it comes to refixing, we recommend holding out until a few days before your fixed rate rollover date. This will allow you to get the
lowest rate on offer. Most banks release rates for you to refix 1-2 months before your date, however, do hold off as when you lock your rates there is typically a break fee if they drop before your refix date and you want to change. Most of our clients are now fixing a mixture of 6 months and longerterm rates. The term you choose will ultimately come down to what you are comfortable with financially and/or your future goals. We would be shying away from the longer 4, and 5-year rates; looking at the cycle, we believe these are overpriced.
The annual student migration
is upon us! So what better time to discuss...
Here are our top 7 tips to get your apartment student-ready. The start of 2025 is in full swing and it’s that time of the year when students return to University to start the new semester. With this newsletter we aim to provide insights for Auckland property managers and apartment owners on how to prepare rentals for returning students.
Tips to get your apartment student-ready:
Clean appliances
• Check appliances and clean if needed, to provide a cleaner and healthier cooking environment for students.
• Ensure air-conditioning service is up to date as the air conditioner will be useful when students stay indoors to focus on their studies during hot summer/autumn days.
Cool Off
• Make sure the apartment’s insulation and weather strips are up to standard. This will keep the apartment cool during summer just as it keeps it warm during winter. It will prevent cold air from escaping the room when the air conditioner or fan is used.
Create an inviting indoor space
• Replace lighting with energy efficient light bulbs such as LED fittings. Lighting is essential for students to excel in their studies. Change out old lightbulbs if required or provide a lamp on the study desk.
• Bring a touch of nature to your indoor space with plants. A variety of indoor plants will create a fresh summer vibe in the apartment. It will not only add visual interest to the room but can also improve air quality.
Create an outdoor space
• Inspect the patio or decking, make sure it’s clean and check if the flooring of the deck is up to standard.
• Create an inviting outdoor space by adding decorations and planters to provide more colors. In apartments and apartment buildings with outdoor space, students will enjoy getting some fresh air in their spare time.
Repaint apartment walls
• Repaint walls with lighter colors. We recommend using neutral colors as it will create a bright and inviting apartment space which will be beneficial for students studying indoors.
Furniture
• Think about what students need in a functional living space. Furniture like a study desk, comfortable chair, bookshelf etc. is essential for student life.
Remodel or renovate
• Is the apartment outdated and in need of remodeling? Transform the living space into a stylish, comfortable and practical apartment for current or new tenants. Benefits of renovating include an increase in property value of a current investment and provide an advantage for future sale.
Rate My Agent Awards
RAY WHITE AUCKLAND CENTRAL ARE PROUD TO BE ACKNOWLEDGED BY RATE MY AGENT FOR THE BELOW AWARDS
CURRENTLY PLACED
#1
Auckland Central
Agency of the Year 2025
#1
Agency of the Year 2025 Grafton
#1
Agency of the Year 2025 Eden Terrace
RateMyAgent is Australia’s leading real estate ratings and reviews website. It collects and verifies reviews from buyers, sellers, and landlords to provide an accurate and reliable assessment of real estate agencies. RateMyAgent Awards are independently judged based on verified customer reviews and sales data.
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Meet the team.
SALES TEAM - AUCKLAND CENTRAL OFFICE
Director City Realty Group
AML Officer
Central
Director of Sales & Auctions
Daniel Horrobin
Cameron Brain
Pauline Bridgman
Mike Richards
Ady Huang
Craig Warburton
Dom Worthington
Dusan Valenta
Habeeb Urrahman
Carlos Del la Varis
Chris Cairns
Grant Elliott
Joon Kim
Krister Samuel
Jeong Lee
Chris Guilford Sales Manager
Wynyard Quarter & Sandringham
Belinda Henson
Casey Chen
Lecta Chanthawong Business Manager
Claire Firmin
Manager Auckland Central
Neil Dayal
Judi Yurak
SALES TEAM - WYNYARD QUARTER OFFICE
WE CAN NEGOTIATE A LOWER RATE. WORK WITH A QUALIFIED AND COMPETENT MORTGAGE ADVISER
Ryan Bridgman Sam Huang
Steve King Steve Kirk
Jamie Maclennan
Luke Crockford
Gabriela Galateanu
Andrew Bond
Ainsley Lewis
Max Beliak Tony Warren
Erin Dayal
Renuka Bisht
Stella Jo
Neil Dayal
Ash Patel
Som Chakraborty
Leo Zhang
Michelle Yurak
Leo Zhu Madan Neupane
