The latest QV data shows the New Zealand property market is still correcting – but there are signs the worst of the slide may be over.
Average home values fell 1.1% over the September quarter, leaving prices 14% below their early 2022 peak. But the decline is slowing. The market appears to be settling. In fact, some regions are already stabilising or rebounding.
For income-focused investors, this matters. Not because it signals a boom – but because in every market cycle, fundamentals come back into focus.
Still Falling, But Not Freefalling
Across the country:
- Auckland dropped 2.5% this quarter – still a buyer’s market, but investor activity is stirring.
- Wellington eased 0.8% – slow and steady correction, with more first-home buyers showing up.
- Christchurch fell just 0.4% – remaining within 0.5% of its 2022 peak.
- Queenstown (+1.8%) and Invercargill (+1.6%) posted solid gains, buoyed by tourism and lifestyle relocations.
QV’s Andrea Rush says it well:
“Lower mortgage rates may encourage a modest rise in activity, but any rebound will remain constrained by broader economic conditions.” Translation? The market is cautious – but not fragile. And for long-term investors, that’s often where the real opportunities live.
Confidence Lags – But It’s Building
One of the big shifts at the end of the quarter was the Reserve Bank’s decision to lower the OCR.
That move is easing borrowing pressure and lifting buyer sentiment. Property professionals are already reporting more enquiries – especially from seasoned investors looking to re-enter selectively.
There’s still a way to go. Rising unemployment and inflationary pressure remain real. But for the first time in a while, interest rates, buyer activity and affordability are all pointing in the same direction.
Why Fundamentals Matter Now More Than Ever
At Norfolk Mortgage Trust, we’re not in the business of speculation. We’ve delivered uninterrupted monthly returns since 2006, through property booms, global financial crises, and long flat markets.
We do it by staying disciplined:
- Every loan is secured against NZ property
- Every borrower is carefully assessed
- Every return focuses on capital preservation first
This is not the exciting end of the market – it’s the reliable one.
Where Steady Returns Still Hold Their Ground
- Annualised pre-tax return: 7.00% p.a. (September, 2025)
- Funds under management: $53 million+
- In September, more than $1.18 Million was invested by everyday New Zealanders with Norfolk Mortgage Trust.
When the headlines are mixed, investors often ask: “Should I wait for the market to turn?”
But the smarter question is: Where can I find consistent income today – backed by real property – without chasing peaks?
Confidence Through Every Cycle
Whether we’re near the bottom or the start of a slow recovery, the path forward will reward patience, prudence, and principles.
If you’re looking for:
- Steady monthly income
- Secured, property-backed investments
- A team that’s navigated every market since 2006
…then Norfolk Mortgage Trust may be a good fit.
Learn more at norfolktrust.co.nz
Invest with Confidence. Invest with Norfolk Mortgage Trust.
Data Source: QV House Price Index,September 2025