New Zealand’s property market has moved deeper into correction. The QV House Price Index shows average home values fell 0.8% in the three months to August, taking the national average to $906,977 – now 13.4% below the January 2022 peak.
For headlines, that’s the story. But for investors, it’s only part of the picture. Some regions continue to hold firm, others are still adjusting, and confidence is slowly creeping back. The real question is: what does this mean for disciplined property-backed investors?
That’s where Norfolk Mortgage Trust comes in. Since 2006, we’ve seen every cycle – and through each one, our role has remained the same: a steady hand guided by fundamentals, not headlines.
A Mixed Market, Not a Single Story
The August quarter reinforced the split personality of the market:
- Resilient regions such as Queenstown (+2.5%) and parts of Hawke’s Bay and Southland continued to record gains, supported by tourism, new development, and local demand.
- Correcting centres like Wellington (-30% from peak) and Auckland (-20% from peak) are still under pressure, though some suburbs are faring better than others.
The result is not a uniform decline but a patchwork of resilience, retreat, and reset. This uneven picture highlights why diversification matters – no single region tells the whole story.
Affordability Edges Back, But Risks Remain
For the first time in years, affordability is improving. Lower prices combined with a recent OCR cut are easing pressure on buyers, and surveys show some believe prices may be close to bottoming out.
But caution remains warranted:
- Rising unemployment is dampening sentiment.
- Household costs – from rates to insurance – continue to climb.
- Migration flows have slowed, reducing demand pressure.
- A wave of townhouse completions is adding supply, creating downward price pressure in some areas.
For investors, the message is clear: affordability improvements alone don’t make for sound opportunities. The key is disciplined lending against strong fundamentals.
Norfolk Mortgage Trust: Steadfast Through Cycles
Through every peak and trough since 2006, Norfolk Mortgage Trust has delivered stability for investors:
- Consistency through cycles – uninterrupted monthly returns for nearly two decades.
- Capital-first discipline – conservative lending and rigorous borrower assessment, with low loan-to-value ratios.
- Diversification by design – across residential, commercial, and regional markets to reduce single-market risk.
- Proven performance – as of 31 August 2025, our annualised pre-tax return stands at 7.00% p.a.
- Trusted by New Zealanders – in August alone, investors placed $980,000 with Norfolk Mortgage Trust. Total funds under management now exceed $52 million.
Our investors know that while markets shift, their investment remains grounded in discipline and trust.
The Bigger Picture: Resilience, Not Reaction
Monthly fluctuations don’t define the market – and they don’t define us. Resilience is built over years of consistent, measured decision-making. That’s the foundation Norfolk Mortgage Trust has delivered since day one, and why our investors continue to place their confidence in us.
Invest with Confidence
Markets rise and fall. Headlines swing from optimism to gloom and back again. What doesn’t change is the value of trust, discipline, and consistency.
If you’re seeking stable, property-backed monthly income, delivered by a team with nearly two decades of proven performance, now is the time to connect.
Invest with Confidence. Invest with Norfolk Mortgage Trust.
Data Source: QV’s August 2025 House Price Index Report