Report Dashboard Supply Demand Valuation Risk Auckland Christchurch
OCR: 3.25% ▼
KEY RISK SIGNALS
OCR REVERSAL RISK
ANZ
Dec 2026 forecast
CAPITAL GAINS TAX
Election
Policy debate
WELLINGTON
Public Cuts
Sector job losses
AUCKLAND OVERSUPPLY
31 wk
Inventory elevated
MIGRATION SLOWDOWN
Slowing
From 130K peak
EARTHQUAKE RISK
Structural
Insurance costs

Risk Radar — 6 Dimensions

1 = Low Risk, 10 = Extreme Risk · Current vs 2023

OCR Forecast — RBNZ vs ANZ

Official Cash Rate path projections

Policy Timeline

Aug 2024 RBNZ begins cutting cycle — first OCR reduction
Nov 2024 OCR cut to 4.25% — easing continues
May 2025 OCR reaches 3.25% — lowest since 2022
Dec 2025 LVR easing for first-home buyers — lower deposit requirements
2026 Capital gains tax debate heats up ahead of election cycle
Dec 2026 ANZ forecasts possible OCR hike to 3.75% if inflation re-emerges

Key Risk Factors

OCR Reversal

ANZ forecasts OCR could rise to 3.75% by Dec 2026 if inflation proves sticky. This would reverse mortgage relief gains and dampen buyer sentiment, particularly in Auckland where affordability is already stretched.

Housing Policy

Capital gains tax is back on the political agenda. Introduction would alter investor calculus significantly, potentially reducing demand from leveraged investors while improving first-home buyer access.

Auckland Oversupply

Auckland inventory sits at 31 weeks, well above the balanced market benchmark of 16-20 weeks. Combined with falling rents (-3.4% YoY), landlords face compressed yields and longer vacancy periods.

Demographic Shift

Net migration has dropped from the 130K peak in 2023 to an estimated 60K in 2025. Further slowdown would reduce rental demand and weaken the demand floor that supported prices during the downturn.