PHOTO: FILE
Is your dream home slipping away to a savvy investor? Here’s what you need to know now…
🖊️ Commentary by Kelvin Davidson, Chief Property Economist – CoreLogic NZ
📊 First Home Buyers Slip, Investors Surge
CoreLogic NZ’s latest Buyer Classification data reveals a subtle but meaningful shift: first home buyers (FHBs) accounted for 25% of purchases in Q1 2025—down from 26% at the end of 2024 and their lowest share since early 2023.
Meanwhile, mortgaged investors are regaining momentum, claiming 23% of the market share, driven largely by everyday investors—the classic Kiwi ‘Mum and Dad’ buyers—who are diving back into the market.
🏡 Buyer Breakdown – Q1 2025
🔹 First Home Buyers: 25%
🔹 Movers (owner-occupiers): 26%
🔹 Mortgaged Investors: 23% 🔺
🔹 Cash Multiple Property Owners: 14%
📍 Wellington Remains a First Home Buyer Stronghold
Despite the dip nationwide, the Wellington region (including Porirua, Lower & Upper Hutt) is bucking the trend, holding strong at 35% FHB market share. Why? Falling prices + increased affordability = greater confidence.
💰 What’s Fueling the Investor Revival?
A combination of falling interest rates, policy changes, and reduced top-up requirements are giving investors an edge.
✅ Mortgage rates down from over 7% to below 5%
✅ Deposit requirements reduced from 35% to 30%
✅ Brightline test shortened
✅ 100% mortgage interest deductibility restored
📉 Investors’ weekly top-ups have dropped from ~$400 to ~$200 per week—making rental property cashflows far more palatable.
👨👩👧👦 Rise of the “Mum and Dad” Landlord
📈 Newbie investors (MPO-2s) have jumped from 6% to 8% of all activity.
📈 MPO 3–4s are also rising—up from 4% to 6%.
They’re focusing more on existing homes, with the new-build preference slipping from 30% in 2023 to 27% in 2025.
🏗️ Why the Cool-Off on New-Builds?
Changes in interest deductibility mean new-builds no longer hold major tax advantages. Add that to high property stock on the market, and investors are eyeing up older homes at better prices.
🔮 What’s Next?
📈 Despite the shifting dynamics, FHBs are still very much in the game. CoreLogic forecasts 10,000 more property transactions in 2025 compared to 2024—so FHBs could still buy more homes overall this year.
🎯 Key support systems like:
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💸 KiwiSaver deposit access
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🏦 Low-deposit lending quotas
remain in place.
💼 Meanwhile, investors are enjoying:
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📉 Lower borrowing costs
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🏠 Higher yields
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📉 Less volatility than alternative investments (e.g., stocks/bonds)
📣 Bottom Line
✔️ First home buyers are feeling the pressure.
✔️ Investors are making a confident comeback.
✔️ 2025 is shaping up to be a market rebalancing year, with opportunity—and competition—on the rise.