Kelvin Davidson, chief property economist for Cotality NZ, said the figures for the March quarter tell a story of resilience.
“Despite house prices still sitting about 16% below their early 2022 peak, most property owners are continuing to sell for a profit – especially those with longer ownership periods.”
The median resale loss decreased slightly to $50,000 in the first quarter of the year, continuing a three-year trend of relative stability in the $50,000–$60,000 range, the report said.
Davidson said longer hold periods remain key.
“A typical property resold for a profit in the first quarter of 2025 had been owned for 9.1 years. That’s unchanged from the prior quarter and underscores how time in the market generally shields owners from volatility,” he said.
The pain and gain figures across the main centres mostly shifted against resellers in the first quarter of 2025, according to the report.
In Auckland, 14.2% of property resales in the first quarter were made below the price originally paid, up slightly from 13.5% in the previous quarter.
The share of resales made for a gross loss in Wellington rose from 9.8% to 10.9%, while Tauranga jumped from 6.7% to 9.4%.
The only main centre to improve from a reseller’s perspective was Christchurch, improving slightly from 4.7% to 4.6% share of resales made for a gross loss.
Across the country, eight cities averaged $300,000-plus profit gains for the quarter, including Tauranga ($362,500), Auckland ($356,000), Hastings ($345,000), Wellington ($339,500) and Gisborne ($338,000).
Hamilton recorded a median gross profit of $290,000, Christchurch ($267,700) and Dunedin ($270,500).
Apartments under pressure
In the first three months of the year, 32.8% of apartments were resold at a loss compared to just 8.4% of houses.
For apartments, that was an increase from 28.6% in the previous quarter.
The median loss on apartment resales was $63,000, while the median resale profit was $128,000.
Davidson said the data didn’t indicate a rush to offload apartments.
“There’s no evidence that apartment owners are abandoning the market en masse,” he said.
“Loss-making sales of apartments might tend to reflect unexpected personal changes such as family issues, rather than widespread market retreat.”
Slow and steady gains
Davidson said while the abundance of property listings and a soft labour market are likely to weigh on prices in the near term, lower interest rates will lend gradual support.
“We’re not anticipating a sharp rebound,” he said.
“But conditions are in place for a slow and steady uplift in values, which should continue to support profitability for resellers over the remainder of 2025.”
The Official Cash Rate (OCR) has fallen 200 basis points since August last year from 5.5% to 3.5%.
The next OCR decision will be made on May 28.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.
