NEW ZEALAND'S PROPERTY MARKET CHILLY AMID ECONOMIC CHALLENGES

WELLINGTON, July 15 (Bernama-Xinhua) -- New Zealand's property market continued to see a rising number of new listings, in contrast with a noticeable decline in buyer activity, as reflected in lower national sales figures, reported Xinhua.

The property market in June reflects the wider economic climate in New Zealand, chief executive of Real Estate Institute of New Zealand (REINZ), Jen Baird, said on Monday.

According to monthly data released by REINZ, the total number of properties sold in New Zealand decreased by 25.6 per cent year-on-year to 4,356, and by 32.6 per cent compared to May 2024.

"The typical winter lull, compounded by current economic conditions, has contributed to lower levels of activity in the market," Baird said, adding that the national sales decreased by 11.1 per cent compared to May 2024, reflecting a market performance below expected levels.

The national median price decreased by 1.3 per cent year-on-year to NZ$770,000 (about US$469,500), and saw no change compared to May 2024, the data showed.

Nationally, listings increased by 25.5 per cent year-on-year to 7,805, continuing the trend seen throughout the year, with high levels of choice for buyers nationwide, Baird stated.

"Regardless of the economic conditions, people's lives change. They grow families, retire, and need to make a property decision alongside those changes.

“Some properties coming to market were due to high interest rates, cost of living pressures, or changing employment circumstances,” she said.

There was a notable decrease in buyer activity in June and a reduced sense of urgency, which was compounded by a slight change in tone from New Zealand's central bank suggesting that this cycle of interest rate pain may have an end in sight, impacting the overall sentiment within the industry, Baird noted.

-- BERNAMA-XINHUA