Source: Cotality NZ
13 August 2026
The proportion of New Zealand properties resold for a gross profit has fallen to its lowest level in almost 14 years as the country’s prolonged housing downturn weighs on resale outcomes.
Cotality NZ’s Pain and Gain Report for the June quarter shows 86.9% of residential properties were resold for more than their original purchase price, down from 88.1% in Q1 and the lowest proportion since Q4 2012.
The share of loss-making resales increased from 11.9% to 13.1%, continuing a gradual deterioration from the market peak, when more than 99% of properties resold for a gain.
Cotality NZ Chief Property Economist Kelvin Davidson said the gradual deterioration in resale performance reflected the prolonged property market downturn, with national values around 18% below their peak.
“Property values peaked in early 2022 and have been through more than four years of falls and stagnation since,” Mr Davidson said.
“While the share of profitable resales has fallen from more than 99% at the peak to 86.9% today, it’s been a gradual adjustment rather than the sharp deterioration we saw during the global financial crisis.”
Mr Davidson said during the GFC, the proportion of profitable resales fell from around 98% in mid-2007 to about 80% within two years.
“We’re not seeing the same widespread repayment problems or mortgagee sales in the current cycle, partly reflecting stronger serviceability testing within the banks. The rise in unemployment has come from more labour supply rather than mass job losses too,” he said.
The national median gain was $280,000 in Q2, down from $292,000 in Q1 and the late-2021 peak of $440,000. The median loss increased from $55,000 to $60,000.
Profitable sellers hold for record 10.4 years
Properties resold for a gain in Q2 had been owned for a median of 10.4 years, a new record for a series dating back to the mid-1990s and up from 10 years in Q1.
The record is part of a longer-term trend towards extended property ownership, with the median hold period for profitable resales increasing from cyclical peaks of 6.5 years in 2001 to another of 8.5 years in 2015 and now 10.4 years in 2026.
“Some owners may be waiting longer for values to recover before selling, while elevated listings and subdued sales activity mean it can simply take longer to achieve a sale,” Mr Davidson said.
“Economic and employment uncertainty may also be encouraging some people to stay where they are, while transaction costs and lending restraints can make moving less attractive.”
By comparison, properties resold for a loss had been owned for a median of 4.3 years, up slightly from 4.2 years in Q1 and 3.9 years in Q4 2025.
Mr Davison said that places the typical purchase of a loss-making property around late 2021 or early 2022, when property values were near their peak and mortgage rates were on the rise.
Apartment resale losses reach highest level since 2010
Apartments recorded a further deterioration in resale performance in Q2, with 45.2% selling for less than their previous purchase price, up from 39.4% in Q1.
It was the highest proportion of loss-making apartment resales since Q3 2010, when the figure reached 48.2%.
Standalone houses were considerably more resilient, with 12.2% sold for a loss in Q2, or 87.8% resold for a gross profit.
“Apartment values have generally recorded weaker capital growth over time and have fallen by around 6% over the past year, compared with about 2% for townhouses and broadly flat values for standalone dwellings,” Mr Davidson said.
“That leaves apartments more exposed to a loss when values are falling, particularly for owners who have bought and sold within a relatively short period. There’s no real evidence of fire-sales of apartments, but it’s also true that sellers are battling a bit in this current environment.”
More than one in five Auckland resales make a loss
Auckland and Wellington recorded the weakest resale performance among the main centres, reflecting subdued property market conditions in both cities.
In Auckland, 20.9% of properties were resold for a loss in Q2, while Wellington recorded a loss on 18.4% of resales. Hamilton followed at 13.4%, Tauranga at 10.7%, Dunedin at 8.0% and Christchurch at 5.3%.
Median losses were highest in Auckland and Wellington at $85,000, compared with $60,000 nationally.
However, longer-term owners in the two cities continued to record some of the country's largest gains, with a median profit of $368,000 in Auckland and $311,750 in Wellington.
Mr Davidson said the contrast highlighted the importance of when a property was purchased and how long it had been owned.
“Auckland and Wellington experienced significant value growth before the recent downturn, so owners who bought many years ago can still be sitting on substantial gains,” he said.
“Recent buyers have had a very different experience, particularly those who purchased near the peak and have needed to sell again within the last four or five years.”
Resale conditions likely to stay subdued
Across all Q2 resales, gross gains totalled $3.83 billion compared with $159 million in gross losses.
Mr Davidson said the difference showed that despite the rising frequency of losses, longer-term property ownership was still generating significant equity for many sellers.
“Even with the gain rate at its lowest since 2012, more than eight in every 10 resellers are still selling above their original purchase price,” he said.
“That being said, for most owner occupiers, those gains won’t necessarily translate into a cash windfall because the equity will generally be recycled into their next property purchase.
“Looking ahead, economic uncertainty remains high, listings are elevated and buyers generally have plenty of choice. Until those conditions change materially, it’s difficult to see resale performance improving significantly in the near term.”
Notes:
The Pain and Gain Report analyses homes resold during the quarter, comparing the most recent sale price to the previous sale price to determine whether the result was a gross profit (gain) or gross loss (pain).