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Promising first home buyer conditions continue

August 24, 2025

The surge in first home buyers (FHBs) this year is set to continue with realestate.co.nz revealing that 58.5% of all properties listed on its website in July were under $850,000 – well below the national average asking price of $858,189.

Spokeswoman Vanessa William noted in the company’s latest property report that this represented a window of opportunity for FHBs before the traditional spring sales volume jump. 

“First home buyers have a prime opportunity to look at their options with a solid band of homes listed for under $850,000. For buyers who have their finances in order and a clear idea of what they’re after, now is a great time to secure a foothold before competition heats up again,” Williams said.

This follows the release of Cotality NZ data that showed FHBs accounted for more than 26% of property purchases in the three months to June, and that FHB sale volumes were continuing to hover near record highs.

In Christchurch and Dunedin FHBs accounted for 27% of total sales, while in the North Island FHB activity was higher. FHBs accounted for 29% of sales in Auckland, 32% in Hamilton and 36% of sales in wider Wellington during the quarter. Elsewhere around the country the number of FHB deals has steadily increased.

Raine & Horne New Zealand General Manager, James Shepherd said the trend showed FHBs were continuing to benefit from being able to tap into their KiwiSaver for help with deposits as well as making full use of the low deposit lending allowances available under LVR rules.

“The fact that property values continue to be below Covid-peaks as mortgage rates and interest payments repeatedly fall is clearly encouraging many FHBs that now is a good time to enter the market and lock in long-term upside,” James noted.

Meanwhile, Cotality NZ data also showed that so-called ‘mum and dad’ property investors with smaller portfolios were driving the return of investors to the market, especially in the cheaper 30% of properties by value.

Small portfolio investors accounted for around 23% of purchases in Q2, 2025, according to Cotality, just below  their long-term average of about 25%, but up significantly from the slump to 21% in the middle of last year. In Auckland and Christchurch small portfolio investors accounted for 26% of activity and 27% in Hamilton.

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