That was good news… and there’s more to come.

On 8 October 2025, the Reserve Bank of New Zealand (RBNZ) delivered a welcome boost to the housing market, cutting the Official Cash Rate (OCR) by 50 basis points to 2.5%.

With another review due on 26 November, Daniel Horrobin, Director of City Realty Group, says:

“It would not be a surprise if there’s another reduction of some description.”

Adding to the positive sentiment, the RBNZ has also confirmed it will ease mortgage loan-to-value ratio (LVR) restrictions from 1 December 2025, signalling greater flexibility for both buyers and investors.

“There’s no doubt the economy is dragging its feet, but good things do take time,” says Daniel.

Economist Tony Alexander, writing in NZ Herald OneRoof, noted that “the economy is improving, but there is a high degree of impatience about the slowness of the upturn, and this has generated considerable pressure on the Reserve Bank to speed things along with extra lowering of borrowing costs.”

Positive Indicators Across the Market

While economic conditions remain cautious, multiple industry reports point to renewed confidence in the New Zealand housing market:

Cotality (formerly CoreLogic) reported on 8 October that “Investors have been returning to the market over the past year, encouraged by the shorter Brightline Test, reduced LVR requirements, the reinstatement of mortgage interest deductibility, and lower mortgage rates.”
Interest.co.nz (9 October) observed that “Hopeful vendors surged into the housing market in September, with new Trade Me listings up 24% compared to August, and 5.9% higher than September 2024.”

The REINZ September Property Report headlined: “Market momentum builds as sales rise and days to sell drop.”
A NZ Herald article on 15 October shared encouraging data from Westpac’s business and household survey, showing that the economy is showing early signs of lifting, with households and businesses reporting still challenging but improving conditions.”

Auckland City Centre – Confidence Rebuilding

As Auckland’s city centre prepares for summer, confidence among business owners is mixed but trending upward.

A recent Heart of the City Business Owners Survey highlighted challenges for central-city operators — “news council and city leaders need to hear,” says Daniel.

“Let’s hope there’s meaningful action from leadership to support those living and working in the heart of the city.”

Despite challenges, optimism is returning. The coming months will see an exciting line-up of events and milestones that are expected to reignite foot traffic and vibrancy across the CBD:

– The $1 billion SkyCity International Convention Centre opens February 2026, with 95 events already booked for its first year.
– Auckland Domain will host a full calendar of major events from February through March 2026, showcasing the park’s renewed vitality.
– The Laneway Festival returns to Western Springs in early February.
– The world-class SailGP Yachting Event will light up Auckland Harbour mid-February.

“The central city will get the summer it deserves,” says Daniel. “And with the long-awaited City Rail Link set to open in 2026, these are exciting times for Auckland — and for everyone who lives, works, and invests here.”

Final Thoughts

While New Zealand’s economic recovery may feel slow, the combination of lower interest rates, easing lending conditions, and growing market momentum are all signs that confidence is returning.

For buyers, sellers, and investors alike — now is the time to prepare for renewed activity heading into 2026.