Buyers gain edge as property prices face deeper cuts, realestate.co.nz reports
Vendors across New Zealand reduced their asking prices by $82 million in the second quarter of 2025, according to new data from realestate.co.nz.
That’s almost $20 million more than the $63 million trimmed in Q1 2025, but well below the $108 million cut in the same period last year.
In Q2, 2,040 properties listed on realestate.co.nz recorded a price drop — a 21% increase from Q1’s 1,686 listings.
“In Q2, we saw both the number of properties with price drops and the size of those reductions increase compared to the start of the year,” said Vanessa Williams (pictured), spokesperson for realestate.co.nz.
“While cuts aren’t as steep as they were in 2024, sellers are clearly making bigger moves to meet buyers and get deals across the line. This tells us buyers are in a strong position, and many vendors are more willing to negotiate to secure a sale.”
The data tracks the difference between a property’s initial asking price on realestate.co.nz and its price at the point of sale or withdrawal – a signal of how much vendors have shifted to meet buyer demand.
The price-drop trend comes as the August mortgages.co.nz & Tony Alexander Mortgage Advisers Survey shows subdued market activity, with modest first-home buyer and investor demand. Economists expect a 25bp OCR cut this month, and tighter stock plus stronger buyer interest are hinting at an early spring lift.
Premium markets lead in total reductions
Nationally, the average price reduction per listing in Q2 was $40,310. Auckland recorded the largest total drop at $20.53 million, followed by Waikato at $9.44 million and Wellington at $8.20 million.
At the other end of the spectrum, West Coast saw a total reduction of just $248,000, Gisborne $270,000, and Wairarapa $1.03 million.
The steepest single price cut in Q2 was $750,000 on an Auckland lifestyle property originally listed for $6.5 million and later reduced to $5.75 million. In Q1, the largest cut was also in Auckland – a $604,500 reduction from $4,899,500 to $4,295,000.
“The biggest cuts are happening at the top end of the market, where a single adjustment can run into hundreds of thousands of dollars,” Williams said. “At the same time, many regional markets are seeing only modest reductions, showing just how varied price movement is across the country.”
Stagnant market still moves when prices align
Williams noted that although the market remains stagnant, competitively priced properties are still selling.
“If sellers meet buyers’ price expectations, the market will move,” she said.
Buyers using realestate.co.nz are automatically notified of any price reduction to their saved listings, giving them a timely advantage when motivated sellers make adjustments.
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