Why 2025 Could Be the Turning Point
2025 vs 2024 – Same Same, But Different
The last year brought more certainty and stability to the Rotorua property market, though not all expectations for recovery fully materialised. While national headlines predicted stronger growth, Rotorua instead remained in a balanced market. House prices held steady without meaningful increases, though we did see a slight lift in sales volumes and a marginal reduction in days on the market.
Lower interest rates were the most significant change, with fixed rates now sitting below 5% compared to the 7% peaks of recent years. This shift has encouraged more buyers into the market, particularly investors. Notably, investor activity included a growing share of buyers from outside Rotorua, adding healthy competition and variety to the market. Auction rooms also saw increased momentum, reflecting the renewed confidence among both buyers and sellers.
Discussions with valuers, bankers, and financial advisors have highlighted two factors that tempered recovery: global uncertainty, particularly with the new US president reshaping international trade, and the cautious approach from both buyers and lenders when it comes to taking on higher debt amid rising living costs. While necessity-driven sales have continued, lifestyle-driven moves are gradually returning. Overall, the Rotorua market has seen greater stability, with signs of growth yet to come Rotorua real estate market update statistics
Looking Ahead
As we move through the remainder of 2025, Rotorua looks well positioned for an uplift in activity. Interest rates at their current levels provide buyers with far greater confidence compared to the previous two years, and this alone should continue to support more market movement. The return of investors – both local and out-of-town – signals confidence in Rotorua’s longer-term prospects and will likely fuel demand, especially as yields become more attractive with the lower cost of borrowing.
The upcoming Spring and Summer months are expected to increase the overall turnover. With sellers now gaining confidence in achievable sale prices and buyers sensing the market has moved past the lowest point, we could see a noticeable lift in both listings and turnover. Importantly, the balance between buyers and sellers is likely to remain, creating a market that is more active but not overheated.
Key drivers for the months ahead will include sustained lower interest rates, improved economic conditions, and growing buyer confidence. While international uncertainties and the cost of living remain factors to watch, the overall trajectory is looking positive. 2025 is shaping up as the year where more homeowners move by choice rather than necessity, creating a healthier and more dynamic market environment.
