Negotiations tilt in favour of buyers as market cools

New Zealand sellers collectively slashed $82 million from their asking prices in the second quarter of 2025, an increase of nearly $20 million over the first quarter – although still below the $108 million in the same period last year, according to realestate.co.nz. That figure reflected 2,040 listings with price reductions, a 21% rise from the 1,686 recorded in the first quarter.

On average, vendors trimmed $40,310 from each listing with a price drop. The largest total reductions occurred in premium regions: Auckland led the way with a collective $20.53 million cut, followed by Waikato at $9.44 million and Wellington at $8.20 million. In contrast, regional areas such as the West Coast ($248,000), Gisborne ($270,000) and Wairarapa ($1.03 million) recorded more modest adjustments.

Realestate.co.nz spokesperson Vanessa Williams said the amount of vendor discounting occurring right now signalled that buyers had gained a stronger position in negotiations, forcing sellers to make bigger adjustments to meet market expectations.

“While cuts aren’t as steep as they were in 2024, sellers are clearly making bigger moves to meet buyers and get deals across the line. This tells us buyers are in a strong position and many vendors are more willing to negotiate to secure a sale,” she said.

Ms Williams added that while the market was flat, well-priced properties were still attracting buyers.

If any of your clients are seeking insight into how market conditions may affect their borrowing options – whether that means reassessing asking price assumptions, considering finance contingencies or planning for negotiations – I’d be grateful for an introduction.