January ‘25 Update for Norfolk Mortgage Trust Clients.
The New Zealand property market is stirring, offering investors an evolving landscape to navigate in 2025. While high interest rates and economic uncertainty continue to cast a shadow, signs of resilience are emerging. The latest QV House Price Index reports a 1.3% national rise in residential property values over the January quarter, with increased buyer competition and falling mortgage rates hinting at potential future growth.
Adding to this momentum, the Reserve Bank of New Zealand (RBNZ)announced a 50 basis point reduction in the Official Cash Rate (OCR)on February 19, 2025, bringing it down to 3.75%. This move is designed to stimulate the economy by making borrowing more affordable, which could significantly impact the property market. As RBNZ Governor Adrian Orr stated, “New Zealand is experiencing a period of low and stable inflation, with positive outlooks for GDP and employment growth in 2025.” Lower mortgage rates are expected to follow, further improving buyer confidence and potentially increasing property demand.
But what does all of this mean for investors seeking stable and strategic opportunities?
And most importantly, how can you make sure your money is working hard for you in the right place? Let’s break down the current market trends and explore why Norfolk Mortgage Trust is a trusted choice for investors seeking both security and steady returns.
Property Market Trends: Cautious Optimism in 2025
New Zealand’s housing market is moving forward, albeit tentatively. With the average home now valued at $913,567, house prices are just 1.3% below their level a year ago and 14.1% below their 2021 peak. This suggests a stabilising market where volatility is giving way to gradual improvement.
Key Market Insights:
- National Trends: The modest 1.3% rise in the January quarter property values indicates a stabilising market, with reduced home value declines and a slight upward trend. Falling mortgage rates and increased sales volumes suggest potential for more substantial growth later in the year.
- Regional Highlights: Most major urban areas experienced growth, with Invercargill leading at 3.8%, followed by Hamilton and Dunedin at 2.3%. Auckland saw a 1.4% increase, while only Whangarei (-0.3%), Hastings (-0.3%), and Queenstown (-1.5%)experienced slight declines.
- Stock vs. Demand: More homes are available for sale than in previous years, keeping price surges at bay for now. However, with mortgage rates on a downward trend, demand may strengthen later in 2025.
- The Economic Factor: High interest rates and job market challenges continue to shape buyer behavior, with first-home buyers playing a larger role in market activity while investors remain cautious.
With the latest OCR cut, borrowing costs have dropped further, making property investments more appealing. However, term deposit rates have also declined, with major banks currently offering long-term rates in the low 4% range.
This is a great time to take a closer look at Norfolk — while borrowing costs drop and term deposit rates shrink, it’s worth exploring where your money can work harder for you.
Norfolk Mortgage Trust: Investing with Confidence
In uncertain times, expertise and reliability matter more than ever. Norfolk Mortgage Trust is built on a foundation of strategic investment, conservative lending practices, and a deep understanding of New Zealand’s financial landscape.
Why Investors Trust Norfolk:
- A Proven Track Record: With decades of experience in property finance, Norfolk has a history of delivering consistent returns, even through market fluctuations.
- Rigorous Risk Management: Our loans are secured by registered first mortgages, carefully vetted to protect investor capital.
- Consistent Performance: Our approach has enabled us to maintain a competitive pre-tax return, making us a trusted choice for investors seeking reliability in their portfolio.
Helping Your Money Work Harder – Without the Hassle:
Whether you’re looking to grow your wealth, secure passive income, or build financial security for the future, Norfolk offers an investment option that prioritises stability, delivers consistent returns, and ensures your money is working harder for you.
Our reinvestment options allow investors to compound their earnings over time, while our structured monthly returns provide a steady stream of income.
Looking Ahead: What This Means for Investors
As the property market continues to stabilise, investors who act strategically have a window of opportunity. Lower mortgage rates and increasing buyer activity suggest potential for prices to improve later in the year — but navigating this market requires careful selection and a focus on security.
With Norfolk Mortgage Trust, your capital isn’t exposed to market volatility — managed with a conservative lending approach, and structured to deliver steady, reliable returns.
Now is the time to make sure your money is working harder for you. Whether you’re looking for stable income, long-term wealth growth, or a way to diversify outside traditional investments, Norfolk can help you achieve your financial goals.
Invest with confidence. Invest with Norfolk Mortgage Trust.
For more information and the opportunity to discuss Norfolk’s approach to lending contact Norfolk Mortgage Trust today.
Data Source: QV’s January 2025 House Price Index Report