New Zealand’s real estate market has seen a noticeable pullback from the significant price reductions that characterized most of 2025, as recent figures reveal the lowest level of asking price cuts recorded in the past two years.
Data shows that during the final quarter of 2025, prices were reduced for 1,374 listed properties, representing only 3% of the total properties on the market during that period. This percentage is the lowest in two years, reflecting a shift among sellers away from large price cuts and toward a less aggressive approach in the sales process.
The total value of price reductions during this quarter reached approximately $41.3 million. While still a considerable amount, it is significantly lower than the roughly $55 million recorded in the fourth quarter of 2024.
Instead of widespread price reductions, the market is now seeing a limited number of properties that genuinely require price adjustments, indicating greater alignment between sellers’ expectations and buyers’ purchasing power.
Have House Prices in New Zealand Stabilized?
According to Williams, although the $40 million in reduced prices remains substantial, the decline in the number of sellers forced to adjust their prices compared with previous years suggests that the drop in the total value of reductions is mainly due to fewer properties requiring price adjustments.
This could mean that sellers have become more realistic when setting their initial asking prices, which may gradually help rebuild buyer confidence. While the situation does not yet represent a full recovery, it could be a positive sign that the market is moving closer to a more stable phase.
