PHOTO: FILE
The cracks in New Zealand’s once-booming housing market are now impossible to ignore.Across the country, homes that once sparked fierce bidding wars are sitting unsold for months — and desperate sellers are slashing prices or pulling listings altogether.
If you thought 2024 was bad, buckle up.The NZ property market is in real trouble — and here’s why.
Huge Discounts Are Now the Norm, Not the Exception
According to new insights from Pigeon Post on YouTube, a growing number of properties are being heavily discounted just to attract buyer interest.
Forget the dream of 2021 prices — sellers clinging to the past are facing a harsh new reality.
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Properties that originally listed at peak market prices are now being discounted by 5%, 10%, or even 20%.
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Listings are lingering far longer on the market, leading to price reductions or withdrawals altogether.
Buyers have more choice, more bargaining power, and are no longer willing to pay premium prices for properties that simply aren’t worth it in today’s environment.
Sellers Are Pulling Their Listings — and Flooding the Rental Market Instead
A worrying trend is emerging:
Instead of accepting lower sale prices, many sellers are taking their properties off the market and trying to rent them out.
This is causing a “bulge” in the rental market, as rental listings hit record highs nationwide.
But with more rental properties available than ever before, even landlords are struggling to find tenants — forcing them to offer incentives like discounted rent, free weeks, grocery vouchers, or even TVs!
It’s a vicious cycle:
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Sellers can’t get their 2021 price
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They put the home up for rent
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The rental market becomes saturated
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Rental prices fall or stagnate
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Landlords lose income
The longer sellers wait, the more financial pressure they face — and the worse their situation becomes.
Why Is the NZ Housing Market Crashing?
Several factors are fueling this rapid downturn:
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High Interest Rates: Borrowing is still expensive, limiting what buyers can afford.
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Cost of Living Crisis: Kiwis are tightening their belts, with less appetite for big mortgages.
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Oversupply: Too many listings, not enough demand.
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Shift in Buyer Mentality: Buyers know the market is weak — and they’re willing to wait for bigger bargains.
The sentiment has shifted massively from “fear of missing out” (FOMO) to “fear of overpaying” (FOOP).
What Happens Next?
Experts and market watchers agree:
The longer sellers refuse to meet the market, the worse it will get for them.
Properties will sit unsold, mortgage stress will rise, and more homes could hit the market at even lower prices as desperate sellers try to offload before things decline further.
If you’re a buyer, this could mean serious opportunities in the coming months — but only for those who are patient and strategic.
If you’re a seller, it’s time to face the music: price realistically or risk losing even more value.
Final Thoughts: NZ’s Housing Bubble Is Bursting
The warning signs are everywhere — and if the market correction continues at this pace, we could be looking at one of the biggest property shakeups in New Zealand’s history.
For years, property was seen as a “guaranteed win” investment.
Now, reality is setting in — and it’s ugly.
Don’t get caught on the wrong side of the crash.
Stay informed, stay realistic, and watch this space.
📈 Quick Infometric:
Property Price Reductions in Major NZ Cities (April 2025)
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Auckland: Average price drop of 9.7%
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Wellington: Price reductions up 8.5% year-on-year
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Christchurch: 6.3% of listings discounted in the last 30 days
(Source: Trade Me Property, Pigeon Post reporting)