WELCOME TO THE SUmmer 2024
PU b LISH er
Century 21 New Zealand Ltd
c ONT r I b UTO r S
Jen Baird
Julius Capilitan REINZ
e DITO r IAL e NQUI r I e S
Century 21 New Zealand +64 9414 6041
ADV er TISING e NQUI r I e S
Century 21 New Zealand +64 9414 6041
DIS c LAI mer
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A c TIVITY H e ATS UP WHIL e P r I ce S rem AIN c OOL
BY JEN BAIRD, REINZ CEO
As we approach summer, market activity is on the rise. In November, the New Zealand property market experienced a wave of confidence, as evidenced by the latest figures from the Real Estate Institute of New Zealand (REINZ).
Buyers are showing increased interest, spurred by the recent reduction in the Official Cash Rate (OCR), prompting more transactions nationwide. At the same time, fewer sellers are bringing their property to market, which is reflected in the nationwide decline in property listings.
“THERE’S BEEN A SHIFT IN MARKET SENTIMENT NATIONWIDE IN NOVEMBER. AFTER A CHALLENGING YEAR, RECENT DATA INDICATES PROMISING SIGNS OF INCREASED ACTIVITY, WHICH WE HOPE WILL CONTINUE INTO 2025. THIS IS A GOOD TIME TO MAKE TRANSACTIONS, AS PRICES REMAIN STABLE, AND INTEREST RATES DECREASE. ”SAYS BAIRD.
Nationwide, sales rose by 10.8% compared to November 2023. In New Zealand, excluding
Auckland, sales increased by 12.9% year-on-year, with notable gains in Gisborne (+55.6%), Hawke's Bay (+34.4%), and Wellington (+32.3%).
Median prices in New Zealand remained unchanged year-on-year and month-on-month, holding steady at $795,000. Excluding Auckland, the median price saw a slight year-on-year increase of $5,000, rising from $700,000 to $705,000 while remaining stable month-on-month.
Nine out of sixteen areas reported an increase in median prices over the past year, with Southland leading the way with a 17.7% from $440,000 to $518,000, a record high for the region and the first time it has recorded a median price over $500K. Gisborne followed with a 13.4% rise year-on-year to $635,000.
“November saw more life in the property market. Buyers are
benefiting from steady prices and increasing options, while sellers in many areas are seeing stronger interest,” adds Baird.
Overall, listings nationally increased year-on-year by 3.9% from 10,712 to 11,129, and New Zealand (excluding Auckland) increased by 7.8% from 6,901 to 7,437 compared to November 2023. Eleven out of fifteen regions reported increases in listings compared to last year. The regions with the most significant increases were Southland (+14.5%), the Bay of Plenty (+14.1%), and the West Coast (+13.6%).
For the first time this year, the number of listings in the market decreased compared to the previous month, with a nationwide decline of 3.8% compared to October 2024. Additionally, listings across New Zealand, excluding Auckland, decreased by 0.4% month-on-month.
ANNUAL MEDIAN PRICE CHANGES
Inventory levels are rising, with a national increase of 21.3% year-on-year and a 5.1% increase month-on-month, totalling 33,984. Baird notes, “November marks the first month in a while that we have seen an increase in demand and a slight reduction in new property coming to market. We expect the summer months to bring the usual upswing in sales activity across the market, this year with both buyers and sellers feeling a little more confident.”
In November, there were 1,209 auctions nationally (16.7% of all sales), a decrease from 20.3% in November 2023. The national median days to sell rose by four to 42 days compared to last year;
excluding Auckland, it increased by three to 42 days this month.
The House Price Index (HPI) for New Zealand is currently at 3,638, reflecting a year-on-year decrease of 1.4% but a month-on-month increase of 0.6%. Over the past five years, the average annual growth rate of New Zealand's HPI has been approximately 4.6%. However, it is currently 14.9% lower than its peak in 2021. In November 2024, Southland reported the highest HPI movement, reaching an index level of 4,652, which marks a new high for the region.
Source: REINZ Monthly Property Report 17 December 2024.
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K e Y UPDAT e S TO T e NAN c Y LAW: WHAT LANDLO r DS AND T e NANTS
ee D TO KNOW ?
The Residential Tenancies Amendment Act 2024 brings several key changes to tenancy laws in New Zealand, aimed at modernising processes and clarifying responsibilities for landlords and tenants. These updates, passed on 17 December 2024, roll out in phases through 2025. Here’s a summary of the most important changes and what they mean for you.
BOND LODGEMENT MOVES ONLINE
Effective immediately, tenancy bonds must be lodged and paid online. Manual submissions via email or post are no longer accepted, and signatures are no longer required. This marks a significant step toward simplifying the bond lodgement process and improving efficiency.
TERMINATION OF TENANCIES
From 30 January 2025, periodic tenancy rules will change. Landlords can terminate a tenancy without cause by providing 90 days’ notice. However, shorter 42-day notice periods apply if the property is:
• Required for the owner’s or a family member’s primary residence.
• Sold, with vacant possession a condition of sale.
• Needed for employees or contractors to reside in.
Tenants, meanwhile, retain the right to end a periodic tenancy with 21 days’ notice. Importantly, landlords cannot retaliate against tenants who exercise their rights, such as requesting maintenance. Retaliatory notices can be overturned, with penalties extending up to 12 months.
MODERNISING NOTICES AND DOCUMENTS
As of 20 March 2025, electronic addresses (e.g., email) can be used as an address for service, provided they are listed in the tenancy agreement. Notices served electronically remain valid for up to two years after a tenancy ends.
PET RULES AND PET BONDS
The introduction of pet-friendly policies (date yet to be set) is a win for tenants. Landlords may only refuse a pet request on reasonable
grounds. Pet bonds, capped at two weeks' rent, can now be charged, ensuring landlords are protected from damage exceeding fair wear and tear.
WITHDRAWING DUE TO FAMILY VIOLENCE
Tenants experiencing family violence–along with their children or dependents–can end a tenancy with just two days’ notice, without financial penalty.
These changes reflect a focus on fairness, efficiency, and balance in the rental sector. Both landlords and tenants are encouraged to familiarise themselves with the timelines and requirements to ensure smooth compliance with the new law.
For full details, visit tenancy.govt.nz
A LIV e IN ’25 O r TH r IV e IN ’25? c HA r TING N e W Z e ALAND’S ec ONO m I c rec
BY JULIUS CAPILITAN
As we prepare to welcome 2025, it’s time to reflect on the changes we’ve seen in New Zealand’s economic landscape and how they might shape the year ahead. With the Reserve Bank of New Zealand (RBNZ) continuing to cut the Official Cash Rate (OCR), and interest rates trending downward, there’s plenty of reason to feel optimistic about what’s to come.
Here’s what you need to know as we step into 2025 – and how you can turn today’s opportunities into tomorrow’s success.
WHERE ARE INTEREST RATES HEADED?
The RBNZ recently reduced the OCR by 50 basis points, with economists predicting it could drop further into the 3% range over the next year. Lower interest rates are designed to stimulate economic growth by encouraging borrowing and investment, which is great news for homeowners and businesses.
What does this mean for Kiwis?
For homeowners, lower rates mean reduced mortgage repayments, freeing up cash flow for other financial goals. For potential buyers, it makes entering the property market more affordable. Businesses, too, can take advantage of cheaper borrowing costs to invest in growth and innovation.
A POSITIVE OUTLOOK FOR 2025
While 2024 was a year of economic adjustment, 2025 is shaping up to
be a year of opportunity. As interest rates continue to fall, the housing market is expected to stabilise, with increased activity from both buyers and sellers.
Julius says: “With rates heading lower, we anticipate a more balanced property market. This could mean fewer financial pressures for homeowners and a boost for those looking to invest in real estate.”
WHAT CAN YOU DO TO THRIVE IN ’25?
1. Review Your Mortgage: Lower rates might mean it’s time to refix or refinance. A shorter-term rate could provide flexibility to refix again if rates drop further.
2. Plan Your Next Move:
Whether you’re buying, selling, or investing, this is a great time to evaluate your financial goals. Speak with a mortgage advisor to ensure you’re making the most of these opportunities.
3. Stay Informed: Keeping up with market trends
and RBNZ announcements will help you make informed decisions.
Julius says: “At Century 21 Financial, we’re here to help you navigate these changes and create a financial plan that works for you. Let’s make 2025 a year of progress and prosperity.”
LOOKING AHEAD
As we enter 2025, the message is clear: The road to recovery is underway, and Kiwis have the tools to not just survive but thrive. Lower interest rates, a stabilising housing market, and a positive economic outlook all point to a year of opportunities.
If you’re ready to make the most of 2025, let’s work together to ensure your financial plans align with the evolving market. At Century 21 Financial , we’re committed to helping you achieve your goals and create the financial plan of the century.
Here’s to thriving in ’25!
DAI rY AND A r A b L e
FA rm S D r IV e
G r OWTH AS FA rm
SAL e S r IS e A cr OSS NEW ZEALAND
BY REINZ
The latest data from the Real Estate Institute of New Zealand (REINZ) reveals a dynamic shift in the rural property market, with farm sales jumping by 25% in the three months to October 2024 compared to the same period last year.
190 farms were sold in the three months ending October 2024, reflecting strong demand for rural properties, compared to 199 farm sales for the three months ending September 2024 (-4.5%) and 152 farm sales for the three months ending October 2023.
This surge is part of a broader trend in the rural sector, as buyers continue to show interest in specific farm types–especially Dairy and Arable properties.
Shane O’Brien, Rural Spokesman at REINZ, commented, “The quiet pre-spring market possibly skews the results for the previous 3 months and doesn’t represent the current market, which seems to be sector driven. Agents across the country are reporting strong buyer activity for high-quality Dairy farms, with several market-leading sales and multiple offers being reported so far this spring. Upcoming sales results are expected to clarify this trend further.”
While the overall number of farms sold in the year to October 2024 reached 960, a decrease of 108 compared to the previous year, the sales data paints a picture of shifting agricultural priorities. Dairy farm sales dropped by 15.6%, while Arable farms soared, with a staggering 45% more properties changing hands compared to the year before.
The median price per hectare for all farms sold in the three months to October 2024 was $28,510, marking a 3.1% increase from the same period last year. Prices also showed a 2.2% increase compared to the previous quarter, indicating a steady rise in land values despite varying market conditions.
“The increase in Arable sales activity has been more widespread and comes after limited activity for much of the year. However, activity in the sheep and beef sector remains constrained due to low returns and unseasonably dry
conditions across several regions, particularly on the South Island,” continues O’Brien.
The REINZ All Farm Price Index, which factors in farm size, location, and farming type, rose by 4.2% from the three months ending October 2024 compared to the three months ending September 2024. However, it decreased by 5.8% compared to the three months ending October 2023, highlighting a complex market where different kinds of farms are seeing varied price movements.
Regarding regional performance, farm sales were up in eight regions for the three months ending October 2024 compared to the three months ending October 2023. The Bay of Plenty recorded an impressive increase of 15 more sales than last year, while Taranaki and Canterbury added nine each.
“It’s very encouraging to see the Bay of Plenty feature with a noticeable increase in sales activity, especially
after challenging market conditions in the Horticulture sector. The signs indicate that this trend is likely to continue. The Dairy market in Canterbury is particularly active, and we anticipate that this will be reflected more fully in the sales results in the coming months,” O’Brien concludes.
Grazing and Finishing farms dominated sales, comprising 42% of all transactions in the three months to October 2024. Dairy and Dairy Support farms accounted for another 27% of the total sales, reflecting continued interest in these traditionally strong sectors.
The market for rural properties remains dynamic, with specific farms and regions outperforming others. With rising prices in key sectors, New Zealand’s rural real estate landscape looks set to stay competitive as we head into 2025.
DAIRY FARMS
From July to October 2024, the median sales price for Dairy farms was $48,325 per hectare (26 properties), up from $39,950
(14 properties) in September and $32,690 (15 properties) in October 2023. This marks a 47.8% increase over the past year. The average Dairy farm size was 94 hectares.
The median price for milk solids was $44.32 per kilogram in October 2024, down from $45.97 in September (a 3.6% decrease) but up from $39.25 a year ago (a 12.9% increase).
The REINZ Dairy Farm Price Index increased 0.2% in the three months to October 2024 compared to the three months to September 2024. Compared to October 2023, the REINZ Dairy Farm Price Index increased by 18.9%.
FINISHING FARMS
For the three months ended October 2024, the median sale price per hectare for Finishing farms was $34,855 (38 properties), down from $34,750 (41 properties) in September 2024 and $38,510 (55 properties) in October 2023. This represents a 9.5% decrease over the past year. The median farm size was 36 hectares.
GRAZING FARMS
For the three months ended October 2024, the median sales price per hectare for Grazing farms was $12,725 (42 properties), down from $13,955 (50 properties) in September 2024 and up from $11,700 (37 properties) in October 2023. Over the past 12 months, the median price per hectare has increased by 8.8%. The median Grazing farm size was 80 hectares.
HORTICULTURE FARMS
For the three months ended October 2024, the median sales price per hectare for Horticulture farms was $191,200 (22 properties), compared to $191,200 (28 properties) for the three months ended September 2024 and $233,330 (14 properties) for the three months ended October 2023. The median price per hectare for Horticulture farms has decreased -18.1% over the past 12 months. The median Horticulture farm size for the three months ended October 2024 was 8 hectares.
PANTON e c OLOU r OF TH e Y e A r 2025: HOW TO IN c O r PO r AT e m O c HA m OUSS e INTO YOU r D ec O r
As we step into 2025, the design world has found its new muse in Pantone's Colour of the Year: Mocha Mousse (PANTONE 17-1230). This inviting, medium-toned brown exudes a luxurious warmth and elegance, striking a perfect balance between earthy simplicity and refined sophistication. It’s a shade that seamlessly fits into both contemporary and classic interiors, offering endless opportunities for design enthusiasts to craft harmonious, inspiring spaces.
WHY MOCHA MOUSSE
Inspired by the richness of chocolate and the comfort of coffee, Mocha Mousse is more than just a colour – it’s a mood. Its versatile and grounding nature makes it an ideal choice for creating cosy yet stylish interiors. Whether you're refreshing a single corner of your home or redesigning an entire space, Mocha Mousse provides a reliable foundation with an indulgent twist.
INTEGRATING MOCHA MOUSSE INTO YOUR HOME
Here are some creative ways to incorporate this great shade into your interior design:
1. Statement Wall
Transform any room into a sanctuary of warmth by featuring Mocha Mousse
on an accent wall. This bold yet soothing choice works beautifully in living rooms and bedrooms, enhancing comfort and intimacy. For balance, pair it with soft neutrals like ivory or light beige.
2. Furniture with Flair
Let your furniture make a statement with this trending colour. A plush Mocha Mousse velvet couch or a sleek leather armchair can instantly elevate your space. If purchasing new furniture isn’t an option, introduce this hue with slipcovers, throw blankets or cushions.
3. Subtle Décor Accents
Sometimes, the smallest details have the biggest impact. Incorporate Mocha Mousse through decorative items
such as rugs, curtains, artwork or even vases. These accents allow you to experiment with the colour without committing to a major overhaul.
4. Elevated Kitchens and Dining Rooms
Don’t confine Mocha Mousse to just living areas. Bring understated luxury to kitchens and dining spaces with this shade. Whether used for cabinetry, dining chairs or table settings, it pairs beautifully with wood tones and metallic finishes, creating a sophisticated yet inviting ambiance.
5. Spa-like Bathrooms
Transform your bathroom into a retreat by incorporating Mocha Mousse through towels, tiles or accessories. The warmth
of this colour suits both minimalist and lavish aesthetics, offering a perfect backdrop for relaxation.
COLOUR PAIRING POSSIBILITIES
One of Mocha Mousse’s greatest strengths is its adaptability. This colour complements a variety of palettes, allowing you to explore creative pairings:
1. Neutral Companions: Combine it with shades like taupe, cream or sandy beige for a serene, monochromatic look.
2. Vibrant Contrasts: Add depth and drama with rich greens such as forest or teal.
3. Metallic Highlights: Accentuate its warmth with gold, brass or bronze for a touch of glamour.
A COLOUR FOR THE FUTURE
Mocha Mousse isn’t just a trend, it’s a celebration of comfort, connection and timeless elegance. As we continue to seek balance in our lives, this colour brings a sense of grounding and harmony to our
living spaces. Whether you’re drawn to bold design moves or subtle enhancements, Mocha Mousse provides a foundation for creating interiors that feel as good as they look.