9 Key Reasons to Invest In Property Today or Regret It Tomorrow

The property investment market waits for no one. While some hesitate, savvy investors are already securing their future wealth. With property prices rising, mortgage rates dropping, and demand surging, now is the time to act.

In this article, we’ll cover 9 powerful property investment tips to help you capitalize on today’s New Zealand market. Backed by expert insights and historical trends, these strategies show why delaying could mean paying more later.

Key Takeaways

• Property prices will rise by 5-7% making early investment key

• Mortgage rates are below 5% making buying more affordable

• Sales volumes jumped 32% showing strong market demand

• Rents are increasing giving investors better returns

• Waiting means higher prices and rising costs

1. Property Prices Set to Rise

Over the long term, property values in New Zealand have typically risen around 7.2% annually, with Auckland slightly higher at 8.2%.  

Independent economist Tony Alexander explains that nationwide property prices in the past five years rose by about 24%, roughly 5% each year. In Auckland, prices increased around 15%, or about 3% each year.  

The recent relative low growth implies we are overdue a period of value growth. 

Tony believes property prices will continue increasing by approximately 5-6% each year for the next 30 years. However, values don’t increase in a straight line by the same % each year but rather tend to swing from low growth rate periods to high growth rate periods cyclically.  

“The time is ripe for a high growth rate period to emerge.“

For 2025 specifically, experts from major banks anticipate price increases: 

• ANZ predicts around 6% 

• BNZ forecasts 6.8% 

• Westpac expects about 7.2% 

• Infometrics anticipates a 5.6% rise 

• A Reuters Poll suggests a 5% increase in 2025 and another 6% in 2026 

• RBNZ forecast a 7% increase in 2025 and another 7% in 2026 

One of the most important property investment tips is to recognize these cycles early. Investing before a period of strong growth begins can significantly increase long-term returns. (Source: RBNZ).

2. Mortgage Rates Under 5% Fuel Property Price Growth 

The Official Cash Rate (OCR), set by the Reserve Bank, started decreasing in August 2023, leading to lower mortgage interest rates. Typically, when mortgage rates fall, it becomes cheaper for people to borrow money, encouraging more home buying.  

The volume of mortgage applications is another leading indicator of property price rises and major trading Banks have recently reported a surge in the volume of mortgage applications since the beginning of 2025. 

This is reflected in the time it is taking to get mortgage approvals which traditionally would take around five business days but the new norm has recently stretched out two to three weeks or more.  

BNZ’s Chief Economist Mike Jones predicts further drops in short-term mortgage rates, making loans even more affordable and encouraging more people to buy properties, further driving up prices. Savvy investors follow property investment tips that emphasize acting when mortgage rates are low. 

Historically, when mortgage rates hovered around 5%, property prices increased between 5-10% annually (i.e. 2013 to 2019) as per the graph below.  

With rates now below 5% similar growth in home values is expected over the next few years. 

3. Beat the Herd 

People often follow what others are doing, especially in property markets. Once a few investors start buying, others quickly join in, causing prices to rise rapidly. Right now, with mortgage rates falling, economic conditions improving, and a looming shortage in housing supply, conditions are perfect for a surge in buyer activity.  

Savvy investors know that acting early, before most people jump back into the market, provides the greatest advantage.  

4. Affordability Has Massively Improved 

Despite higher home prices compared to 20 years ago, properties are in fact more affordable today than they were in 2004 due to significantly higher incomes and much lower mortgage rates.  

Affordability has markedly improved by so much that even a young working couple both on the minimum wage can afford a mortgage of $572,000!  

5. Historical Cycles Signal A Rapid Rebound Is Overdue 

Historically, after periods of slower growth or downturn, New Zealand’s property market tends to recover quickly, often exceeding expectations.  

Experienced property investors know this pattern well and typically start buying properties again, which accelerates price growth.  

You can see in the graph below that short periods of property price falls are always followed by sustained periods of price rises every single time, without fail. 

Recognising and acting on these cycles allows investors to maximize gains as the market rebounds. 

Remember: One of the key property investment tips is to act before a market rebound, as prices tend to rise sharply once recovery begins.

 6. Rising Sales Volumes Lead Price Growth 

Sales volumes, the number of properties sold, are a reliable leading indicator of future price movements. Over the past few years, sales volumes have been slowly yet steadily increasing. 

For example, sales volumes for the month of January have increased by 32% compared to January just 2 years ago. Sales grew from 2,855 properties sold in January 2023 to 3,774 in January 2025.  

Rising sales indicate increased demand, suggesting that property prices are likely to follow upwards as more buyers compete for available homes. 

7. Improving Auction Clearance Rates 

Auction clearance rates, the percentage of properties selling successfully at auction, have significantly increased since early 2025. Higher clearance rates demonstrate stronger buyer confidence and growing demand, signalling a healthier and more active property market. 

8. Rents Are Increasing Again 

After a year-long period without significant rent increases, rental prices have started to rise again. 

Increasing rents suggest higher demand and strong market fundamentals, benefiting property investors with better returns and indicating a recovering market. 

9. Construction Cost Rises  

Building new homes has become increasingly expensive. From 2022 to 2024, construction costs increased by 21.6%. Also, local council fees, known as contributions, have also risen significantly. (Source: Wise)

Buying property now means you lock in today's lower prices and costs, preparing you to benefit from future increases in property values.  

One of the key property investment tips is to factor in rising costs when deciding whether to buy now or wait. Delaying a purchase could mean paying significantly more in the near future.

Waiting to buy later typically means paying higher prices, so taking action today can ensure you capture future gains at today's prices. 

Final Thoughts on Property Investment Tips

Smart property investment tips can help investors make informed decisions and maximise returns. As history has shown, property prices tend to rise over time, and the current conditions, low mortgage rates, increasing sales volumes, and improving affordability, suggest that now is a prime opportunity for investors.

The best investment decisions are made with foresight, not hindsight. Act now, and you’ll be securing tomorrow’s property profits today. For the latest updates, market news, and expert insights, visit Staircase.