Propertyscouts Monthly Landlord Newsletter - April 2025
Welcome back to the Propertyscouts monthly landlord newsletter, where we update you on all things New Zealand property market, investor insights, seasonal reminders, and more.
What’s shaking up the NZ property market?
After a rollercoaster ride, the market is showing signs of stability. Listings are up 26%, mortgage rates are easing, and buyers have more choices. But affordability is still a mixed bag - while Wellington is now the most affordable major centre.
The big question? How long it will take for the housing market to absorb the current oversupply - this will determine when demand starts pushing prices up again.
Borrowers Locking in Longer Mortgage Terms
As interest rate movements continue, homeowners are shifting towards longer-term fixed mortgages. The introduction of a 4.99% two-year fixed rate has been a game changer, with many locking in for two or three years to gain stability.
Experts warn against chasing the lowest rate - it's about minimising total costs over time. While OCR cuts are expected in 2025, rate markets remain volatile, making longer fixes an attractive option.
Recent Property Investor Insights by Tony Alexander
Stay informed with the latest property insights provided by Tony Alexander. Learn about the developments and trends shaping the New Zealand property market currently, covering:
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A year ago, a net 27% of landlords found it easy to secure good tenants. Now, a record net 24% say it is difficult. This is due to weaker migration and an increased supply of rental properties from unsold townhouses entering the market.
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Thinking of selling? You’re not alone - 35% of landlords are now considering selling (up from 30%), and fewer are looking to buy.
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The combination of reduced demand and increased supply explains why house prices have stayed flat.
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What’s next? - The market might tighten next year as more landlords sell up and fewer new rentals get built.
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Getting a loan? It’s easier now – More landlords report that banks are saying ‘yes’ to lending.
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Maintenance, insurance, and council rates continue to be major concerns, making rental property ownership more expensive.
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Falling interest rates may be temporary, with 4.99% potentially near the low point unless a major global downturn occurs.
The Latest Ask An Expert from Within the NZ Property Investor Magazine
Propertyscouts is a designated Property Management Expert in the popular magazine - NZ Property Investor. Our Managing Director, Ryan Weir, recently entered a response to their recent 'Expert Advice Q&A'. View our April entry below:
Question: : I have a rental property built in the 1950s with a small room measuring 1.6m wide and 5.8m² in area. I feel the property is a three-bedroom home, inclusive of this room, and would like to rent it as such. However, I’ve heard the room might not meet the legal standards for a bedroom, so I may have no choice but to advertise it as a two-bedroom property, which could adversely affect my return. Are there any exemptions for older properties that might allow this?
Answer: The Housing Improvement Regulations 1947 require bedrooms to meet a minimum width of 1.8 metres and an area of at least 6 square metres. Unfortunately, your room does not meet these requirements, as its width of 1.6 metres and area are both below the minimum standard. An amendment in 1975 broadened the definition of "existing houses" to include properties built before 23 April 1975, such as yours. This allows rooms measuring between 4.5m² and 6m² to be used as bedrooms for children under 10. However, the width requirement of 1.8 metres remains non-negotiable regardless of the home’s age. Although you view the property as a three-bedroom home, advertising it as such may expose you to disputes if tenants challenge the compliance of this room. Unfortunately, this could mean marketing it as a two-bedroom home. One way to mitigate this is by promoting the property as a two-bedroom home with an office - this could be a strong selling point, especially in the post-COVID era where many tenants appreciate having a home office. Alternatively, you could check with your local council for any records confirming the room's use as a bedroom.
April Rental Market and Investment News Roundup
And of course, no newsletter is complete without a quick recap of recent news. Here are some key updates in the New Zealand property investment landscape.
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Mortgage Rates Still Dropping… But for How Long? The biggest cuts might be behind us, but most banks now offer 2-3 year fixed rates under 5%.
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Fixed or Floating? With long-term rates dipping below 5%, more borrowers are locking in.
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Property Values on the Rise? February saw a 0.3% national increase - the first since last January. Could this be the start of a comeback?
Quote to Ponder
"Success is the sum of small efforts, repeated day in and day out." - Robert Collier
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Disclaimer
Given the opinions expressed in parts of the email, it’s important that we make it clear that the contents are opinions and observations and made in good faith.
Propertyscouts NZ (2020) Limited, trading as Propertyscouts, and its associated parties (including directors, agents, employees, officers or otherwise) have attempted to provide this information to the best of their ability but do not make any representations or warranties of any nature (intended or implied) as to the accuracy of the information on this communication. All recipients of this communication should conduct and rely on their own enquiries in relation to the information on this communication.
The information available on the properties listed for sale, rent or otherwise, has been obtained from the vendor or landlord of the property and the appropriate professional service providers. We do not and cannot verify or guarantee the accuracy of the information obtained in relation to the properties.
The information and/or materials available in this communication are intended to be general information only and may be changed at any time, without notice to you. The information and/or materials in this communication should not be relied on under any circumstances as a substitute for legal, financial, real estate, or other professional and/or expert advice. To the maximum extent permitted by law, Propertyscouts and its associated parties disclaim all liability, responsibility, and negligence for any direct or indirect loss or damage suffered by any person arising from the information and/or materials presented in this communication or any information and/or materials that arise from it.