New Zealand’s property market recorded modest overall gains in June, however several cities outperformed the national average. 

Tauranga and Christchurch led the way with a monthly rise of 0.6%, followed by Hamilton at 0.3% and Dunedin with a 0.2% increase, while Auckland and Wellington were stable.  On a national basis New Zealand property values were up 0.2% for the month.

Another bright spot was mortgaged multiple property owners who as a group remained on the comeback trail in June, particularly at the smaller end of the market. This group included investors who were buying their first rental investment, or perhaps their second, Cotality noted in its latest Home Value Index report.

Cotality NZ Chief Property Economist Kelvin Davidson said value increases were underpinned by falling interest rates, while other commentators are expecting a boost to the economy and property market as existing mortgage-holders repriced from a current average rate of around 5.9% down towards prevailing interest rates of 5% or less.

Attention now turns to the Reserve Bank of New Zealand (RBNZ), which is set to announce its next cash rate decision next week. On 28 May the RBNZ cut the Official Cash Rate by 25 basis points to 3.25%. In doing so the central bank cut rates for the sixth consecutive meeting by a cumulative 225 basis points since August last year.

Many homeowners and buyers are watching closely to see if another cut is on the horizon and the cutting streak is stretched to seven. According Raine & Horne National Compliance Manager, James Shepherd while most experts expect the RBNZ to hold rates steady this month amid signs of stabilising inflation, some of the major banks remain unconvinced that the economy has fully turned the corner, suggesting a rate cut in August may be more likely.

Whether you want to buy, sell or rent a property, don’t hesitate to contact your local Raine & Horne office.