Housing market New Zealand: Mum and dad buyers lead increase in property investors, report says

Investors have been returning to the market over the past year. Photo / 123RF

Mum and dad investors are leading a rise in mortgaged multiple property owners (MPOs), according to the latest data from Cotality.

Cotality’s latest Pulse report revealed mortgaged MPOs’ share of property purchases has risen from 22% last year to 23.5%.

Investors have been returning to the market over the past year, encouraged by the shorter Brightline Test, reduced deposit/LVR requirements, the full reinstatement of mortgage interest deductibility and lower mortgage rates.

Cotality’s chief property economist, Kelvin Davidson, said while there was no set definition of a mum and dad investor, smaller buyers are driving wider activity.

This includes new investors who own two properties or those with a small portfolio already, of up to three investment properties.

“With potential top-up costs falling many appear to be using equity in their own home or across their existing portfolio of rental dwellings to step into the market,” Davidson said.

“While first-home buyers still dominate in Wellington, investor activity has strengthened across the other main centres over the past 12-18 months, reaching close to 29% in Hamilton, 27% in Christchurch, and 26% in Auckland.”

Davidson said Tauranga and Dunedin had also recorded higher investor presence.

The Pulse report also showed investors are paying less for property than last year.

So far in 2025, mortgaged MPOs nationally have paid a median of $759,000, slightly down from $770,000 in 2024.

“The small dip in the MPOs’ median price isn’t because they’ve shifted to cheaper properties. In fact, their share of standalone house purchases has edged up from 66% last year to 67% in 2025,” Davidson said.

First-home buyers have paid a median price of $700,000 this year, up from $695,000 last year. Relocating owner-occupiers, or movers, have paid $880,000 this year compared to $870,000 in 2024.

New builds also remain a significant part of mortgaged MPO activity, accounting for around 30% of the new-build market this year.

“New-builds continue to appeal because they’re exempt from LVR and DTI restrictions, even though some earlier tax benefits have gone,” Davidson said.

“The trade-off for investors is that new-builds generally come with higher purchase prices and less scope to create gains through renovation.”

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