Almost one in five Auckland homeowners are now selling their properties at a loss, according to new data from Cotality’s latest Pain and Gain report.
According to a report by RNZ, the quarterly analysis, which tracks the share of properties sold for gains or losses nationwide, shows that 87.8% of homes across New Zealand were resold for more than their previous purchase price in the third quarter of this year. That figure is down from 89.4% in the previous quarter and marks the highest proportion of loss-making sales since 2013.
Auckland recorded the steepest losses among major centres. The report found that 18.2% of owner-occupiers and 22.8% of investors in the city sold for less than they originally paid. In comparison, South Wairarapa saw 32% of resales end in loss, while Masterton registered 18.8%, RNZ reported.
The data excludes selling costs such as agent commissions, meaning the real proportion of loss-making sales is likely higher.
In Wellington, 13.4% of owner-occupiers and 20.9% of investors faced losses.
AS reported by RNZ, Cotality chief property economist Kelvin Davidson said the numbers align with a market still recovering from significant price declines.
He noted that “both Auckland and Wellington went through very strong growth during the boom period, so more recent buyers paid top prices and are now more vulnerable. Auckland's larger pool of apartments also contributes to its higher loss rate, although that reflects long-run performance rather than short-term weakness,” RNZ quoted.
The report shows the national median resale gain was $270,000, down from the late-2021 peak of $440,000 but still higher than pre-2020 levels. The median loss was $50,000, slightly below the previous quarter.
Davidson said the biggest factor behind whether sellers gained or lost money was how long they had owned the property. Homes sold for a profit had a median ownership of 9.5 years, compared to just under four years for loss-making sales.
“The resale performance of property is not weak in an absolute sense, but the figures highlight the role of time in the market. Longer ownership provides a much greater likelihood of securing a capital gain,” RNZ quoted.
Those who bought around three to four years ago remain the most exposed. Davidson noted that “three-and-a-bit years ago places you [were] at a point in the cycle when prices were extremely high, and mortgage rates were already rising. Anyone who bought then and has since faced a change in circumstances is more exposed to selling at a lower price than expected,” quoted RNZ.
Standalone houses performed significantly better than apartments, with loss rates of 11.4% and 36.2% respectively.
Queenstown Lakes continued to outperform the rest of the country, with only 2.4% of resales resulting in losses and a median gain of $486,000, RNZ quoted.
While the data has softened, Davidson said the wider picture remains relatively stable. “If you look at the median gain of $270,000 most people would say that's still pretty substantial. It is weaker than it's been for quite some time but it's not a complete blowout either.”
He added that the current downturn is more gradual than the sharp decline during the Global Financial Crisis. “This time it's fallen from about 100% to about 90% in about four years. It's been more of a slow burn.”
Many homeowners have been able to extend their mortgages to ease financial pressure, but values remain 17% below peak levels.
“Anybody who bought four years ago... there is still a likelihood of making a loss because they purchased at the peak of the market,” as quoted by RNZ.
According to RNZ, Davidson warned that those who bought during the 2021–early 2022 peak may remain vulnerable for several more years. “If you bought in 2021... that in hindsight was a difficult period to have made a purchase if circumstances changed and you've had to sell again in a short period of time.”
First-home buyers, he said, may particularly feel the strain. “It's very different if you're in those shoes and you paid a price that was top dollar in 2021 and you're still sitting on a paper loss four years later,” RNZ quoted.
Loss-making sales are expected to remain elevated in the near term due to subdued market conditions, sentiment, and available stock. However, regions with strong affordability or tight supply, such as Queenstown Lakes, remain well positioned.
Davidson said, “Property resellers may fare better in 2026, although a rapid turnaround looks unlikely.”