Property Investment
3 min read
Author: Andrew Nicol
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
For decades, property was seen as not just a way to build wealth, but the way. The reliable asset we trusted above all others.
Now, people are starting to wonder whether the romance is over.
But as you’re about to see … the love affair wasn’t what people often think.
NZ homeownership rates are similar to those in the UK, Canada and Australia.
Only about 10% of Kiwis own an investment property. While we like to talk about property, we’re not a nation where everyone is relying on property for retirement.
The truth is that the “Kiwis love property” narrative was always overblown in both directions. Both in terms of property being the ‘only’ way to build wealth … and now in terms of the break-up.
Because Kiwis are still buying property.
At the bottom of the market, Kiwis bought and sold 56,000 properties a year. The market has now fully recovered to the long-term average.
New Zealanders bought and sold 79,600 properties in the 12 months to January 2026. That’s above the 78,000 long-term average.
So what’s the reason for worries about a break-up? It’s not that people have stopped buying houses.
It’s because house prices haven’t started increasing yet. Compare that to Australia, where house prices have already started increasing again.
That's what's driving the mood. It’s not a fundamental shift in how Kiwis feel about property, but the fact that people can't see their wealth growing right now.
The difference between us and Australia is that we had a bigger Covid-fuelled property boom. Because of that, we’re still flat while the Aussie housing market is recovering.
Here at Opes, we survey 200 New Zealanders every month. And we take a nationally representative poll to understand who wants to invest.
I’m going to do something I’ve never done before and share the numbers with you.
Right now, 17% of adults either bought an investment property in the last 3 years or plan to buy one in the next 3.
That matters because only about 10 – 11% of people own an investment property today.
So, there are more people who want to invest in property than there are people who already invest.
But, interestingly, the people who want to invest aren’t the boomers you probably think of.
It’s younger people. Those aged 25-44 are most interested in buying investment properties.
It’s not older folks who are 10 years from retirement. Sure, there’s still interest from those guys, too. But the market skews younger.
Now, that’s not me saying younger people aren’t interested in shares and other investments, too. They are. But one doesn’t cancel out the other … people can be interested in both shares and property.
Here’s where I think people go too far: they treat a national mood as a national fact.
When prices are booming, everyone talks about property. When prices go flat, they stop.
In 1995, 2005, 2015 and 2021, house prices surged, and everyone wanted in.
These days … not as much. When the market is flat, you can't see the benefit of rising house prices directly in front of you.
But flat markets are normal. And they are necessary. They sow the seeds for the recovery.
They allow wages to catch up to house prices. They shake out speculators. They bring yields back to reasonable levels.
Every recovery in NZ property has started from a period that felt exactly like this one. And we can see that we’ve had many flat markets in the past.
Yes, KiwiSaver and managed funds are getting more attention now. ASB’s latest investor confidence survey shows Kiwis are now more favourable towards those investments than property.
That’s a real shift.
But competition is not the same as rejection.
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.
This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.
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