Buyer frustration climbs as stressed market fuels complaints
New Zealand’s real estate regulator is reporting a sharp rise in consumer dissatisfaction, with the Real Estate Authority (REA) confirming a 35% increase in formal complaints in the year to 30 June.
The REA’s 2025 annual report shows 487 complaints, up from 361 the previous year. Of those, 9% of licensees involved had findings of misconduct or unsatisfactory conduct.
Complaints most commonly related to customer service, skill and care, disclosure issues, misleading advertising and poor communication, Stuff and RNZ reported.
REA also processed a record volume of cases, resolving 341 matters through early resolution and determining 467 complaints overall — up from 283 last year.
REA Chief Executive Belinda Moffat said while most licensees continue to uphold high standards, the rise in complaints highlights growing stress in the market.
“REA is holding to account those who don't,” Moffat said. “The increase in consumer dissatisfaction… needs to be a focus for the industry.”
Cases becoming more complex as conditions toughen
Moffat said many matters reflected the difficult environment facing both salespeople and consumers.
“Prices are quite uncertain,” she said. “We’re also seeing quite long times to sell, financial pressures on different parties and, with that, I think some of our consumers are having higher levels of dissatisfaction... there is more stress.”
Moffat said the evolving market requires stronger communication and greater skill from licensees.
“Being a licensed real estate professional really requires high skill. It requires a lot of knowledge. They do need to be really well educated and prepared.”
REA said it is supporting higher standards through new AI guidance, expanded professional development, and accessible consumer resources, including tools for blind and low-vision buyers and sellers.
Moffat emphasised the importance of fairness and transparency, adding that the rise in complaints underscores the need for quality information throughout property transactions.
Licensee numbers steady, supervisory ranks grow
There are 15,692 active real estate licensees, including:
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12,300 salespeople
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1,930 individual agents
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605 branch managers
Branch managers increased 18%, reflecting the need for stronger oversight.
Despite steady licence numbers, monthly sales remain comparatively low — 6,346 residential sales in September, according to REINZ — intensifying competitive pressures within the industry.
REA Board Chair Denese Bates KC said the annual report showed “meaningful progress” toward a high-performing, well-regulated sector.
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