December ‘24 Update for Norfolk Mortgage Trust Clients.
As 2025 unfolds, New Zealand’s property market continues to navigate through a period of stabilisation. The latest QV House Price Index highlights a national trend of slight growth, with residential property values increasing by an average of just 0.1% in the December quarter. While this marks a subdued start to the year, it also reflects an equilibrium where prices have largely stabilized, offering both challenges and opportunities for investors. In this blog post, we’ll explore the latest market insights and demonstrate how Norfolk Mortgage Trust (NMT) remains a secure and dependable choice for investors seeking consistent returns.
Key Takeaways from the Current Market:
- National Trends: Property values edged upwards by 0.1% nationally in the last quarter of 2024, with the average home now valued at $902,414. This reflects a market that’s continuing to flatten with the average value now just 0.3% lower than at the start of 2024 and 15.2% below its peak three years ago.
- Regional Highlights: Reflecting a more balanced market, only three major urban areas experienced modest declines in average home values last quarter—Rotorua (-2.3%), Marlborough (-0.7%), and Queenstown (-1.4%). Meanwhile, most other regions saw slight increases, such as Auckland (1.3%), Wellington (0.4%), and Christchurch (1.1%) Market.
- Outlook: Gradual market improvement is expected to continue as falling interest rates begin to bolster buyer confidence. However, lingering economic uncertainty and a surplus of properties on the market are expected to temper the pace of growth.
Market Analysis: Stability Amid Ongoing Uncertainty
The property market’s static trajectory reflects broader economic factors, including rising unemployment, cost-of-living pressures, and lingering high interest rates . Despite these challenges, several regions demonstrated resilience:
- Christchurch: With an average home value increase of 1.1%, the city’s stability is supported by a strong local economy and continued infrastructure development.
- Invercargill: Leading the pack with 3.9% growth in 2024, the city’s affordability and community investment make it a standout performer.
- Queenstown: While experiencing a slight decline (-1.4%) in the last quarter, Queenstown ended the year 2.5% higher than at its start, highlighting its long-term appeal.
James Wilson, QV’s Operations Manager, encapsulated the current sentiment:
“It’s a new year, but the same restraining factors are still very much at play. However, with interest rates continuing to ease, we may see a gradual uplift in investor activity throughout 2025.”
Norfolk Mortgage Trust: A Proven Investment Partner in Uncertain Times
Amid these market conditions, Norfolk Mortgage Trust’s commitment to delivering consistent and competitive returns remains steadfast. Here’s why our investors continue to place their trust in us:
- Expertise: With decades of experience, NMT’s management team has a deep understanding of market dynamics.
- Rigorous Evaluation: We employ stringent borrower evaluation processes to minimise risk and safeguard investor capital.
- Consistent Returns: Our diversified portfolio and conservative lending practices have enabled us to maintain a competitive pre-tax rate of 7.50% p.a. from May to December 2024*, despite the uncertainty of market fluctuations.
*annualised pre-tax distribution rate, **Past performance is not indicative of future performance.
While the property market remains subdued, the combination of falling interest rates and stabilising house values presents a window of opportunity for savvy investors. Norfolk Mortgage Trust’s disciplined approach ensures your investment is well-positioned to capitalize on these conditions.
Join a Trusted Investment Partner
Choosing where to invest your money is a significant decision. At Norfolk Mortgage Trust, we prioritise transparency, diversification, and performance to help you achieve your financial goals with confidence. 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 December 2024 House Price Index Report