The market is showing the first clear signs that the downturn in Aotearoa property values in 2024 has come to an end, property researcher CoreLogic says.

The latest CoreLogic Home Value Index recorded a 0.3% national rise in February, with Christchurch and Dunedin both increasing by 0.6% and the Wellington area seeing a mild lift of 0.1%.

CoreLogic NZ Chief Property Economist Kelvin Davidson said that investors had started to return to the market at levels not seen since 2021. Falling mortgage rates had been a key attraction, which had significantly reduced the income top-ups required to sustain cashflow on recent rental property purchases.

Investors were also benefiting from the easing in Kiwi Loan-To-Value rules from July 1 last year, and interest deductibility returning to 100% from April 1, 2025, which would help investor budgets and encourage further property investment activity, he said.

 First home buyers (FHB) had remained a key presence in the property market in recent months, with their percentage share of purchases holding up at or around record highs. FHB access to KiwiSaver for part of a purchase deposit had helped this significant segment, as had tapping into the low-deposit lending allowances offered by banks, Mr Davidson added.

 Keith Niederer, Network Manager, Raine & Horne, said the findings were reflected in what Raine & Horne agents were seeing across the motu. There had been an uptick in interest in well-presented investment properties with strong fundamentals in key regions, but in general, current conditions remained favourable for all property types, he said.

 Meanwhile, CoreLogic said it was closely watching the terms borrowers were choosing when taking out a new mortgage or repricing an existing loan.

 “In January, just 10% of new loans were fixed for longer than 12 months, or in other words 90% floated or went for a short, fixed rate. But given that ‘rate wars’ emerged for the longer 2-3 year fixed terms in February, the next data (due early April) could show the start of a shift back towards longer fixes again, especially if global uncertainty stays elevated.

“All in all, 2025 could see a subdued upturn for the property market, with values nationally rising by around 5%," Mr Davidson said.

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