Auckland leads loss-making resales as market softens
New Zealand property owners are recording the weakest resale gains in more than a decade, with softer prices, longer hold periods and firm buyer expectations shaping vendor outcomes.
Cotality NZ’s Pain and Gain Report shows 87.8% of Q3 resales achieved a gain, down from 89.4% in Q2 and the lowest since mid-2013.
“The figures are consistent with property values still being down significantly from their peak in many areas, as well as buyers holding most of the pricing power,” said Cotality NZ chief property economist Kelvin Davidson (pictured). “Rather than a slump, it has been a gradual drift downwards for resale performance since early 2022.”
BNZ’s latest housing outlook also points to another subdued year ahead, with chief economist Mike Jones expecting prices to finish 2025 up just 0.5% and forecasting only modest growth in 2026 as supply continues to outpace demand.
Despite the slowdown, most vendors still secured a substantial gain. The national median resale gain was $270,000, well down from the $440,000 peak in late 2021 but still high by historic standards. The median loss was $50,000.
Longer hold periods driving better outcomes
The median hold period for a profitable resale rose to 9.5 years, the longest in the series.
For loss-making sales, the median hold period was 3.7 years.
“Three-and-a-bit years ago places you at a point in the cycle when prices were extremely high and mortgage rates were already rising,” Davidson said.
Houses outperform apartments as unit losses rise
Standalone houses continued to outperform apartments:
- House loss rate: 11.4%
- Apartment loss rate: 36.2%, the highest since early 2012
- Only 64% of apartment resales made a profit
“Apartments tend to record smaller long-term capital gains than standalone houses,” Davidson said. “That’s normal for this part of the market.”
Auckland and Wellington remain softest
Auckland, where the council’s newly released Plan Change 120 proposes a major reset of the city’s housing, density and infrastructure planning, recorded the highest proportion of loss-making resales at 19.3%, followed by Wellington at 15.8%.
Tauranga recorded the largest median resale gain at $352,000, followed by Auckland ($338,000) and Wellington ($330,000).
Christchurch remained the most resilient of the major centres, with just 5.5% of resales made at a loss.
Regional markets mixed
Queenstown Lakes remained the strongest performer, with only 2.4% of resales made at a loss and a median gain of $486,000.
Invercargill also improved, while Nelson softened.
Outlook: Gradual recovery, not a rebound
Cotality (formerly CoreLogic) expects loss-making resales to remain elevated due to values still sitting below peak levels and stock levels remaining high.
“Property resellers may fare better in 2026, although a rapid turnaround looks unlikely,” Davidson said.
Read the media release or download the latest Pain & Gain Report for more information.
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