Holding periods remain mixed. About a quarter of landlords have no plans to sell, while others are split between short‑term (around a year) and five‑to‑10‑year horizons. Investors who do plan to re‑enter the market continue to favour existing stock over new builds, reflecting concerns about construction costs and development risk.
Even so, first-home buyers are holding up as a key source of demand, taking more than 27% of purchases nationwide in Q1 and around 30% in Auckland, according to Cotality.
Rent rises planned, but pressure is easing
Despite softening demand, most landlords still expect to lift rents. The survey notes that “a net 46% of existing investors plan raising their rents over the coming 12 months.” However, the average planned increase has eased to 3.7%, the lowest in the survey’s history, down from 4% over the previous three months.
The report suggests this pullback is linked to “the high supply of rental property set against relatively weak demand for accommodation from tenants.”