New data from Cotality shows 41% of apartments resold in Q1 fetched less than the previous purchase price. For Auckland investors, the median loss hit $77,000 — and the trend has been building since late 2021.
New data from property data company Cotality shows that apartment owners and property investors are the segment most likely to sell at a loss in New Zealand's current market. Its Pain and Gain Report for the first quarter found that 41.1 percent of apartments resold in Q1 were sold for less than their previous purchase price. For investor-owned properties more broadly, 13.7 percent of resales were loss-making.
The overall figure for all residential properties was 12.2 percent — meaning roughly one in eight properties sold in Q1 changed hands at a loss relative to the previous transaction. That might sound manageable until you consider the scale of the underlying numbers and the dollar amounts involved.
The median numbers
The median loss across all properties sold at a loss in Q1 was $54,000. The median gain for properties that sold at a profit was $285,000 — more than five times the median loss.
Those figures need context. The median gain is boosted by properties held for longer periods, particularly those bought before or during the early stages of the pandemic boom. The median length of ownership for loss-making properties was 4.2 years, compared to 10 years for profit-making sales.
What that tells us is that the investors who are now selling at a loss are largely those who bought during the 2021-2022 price peak, when the market was running at elevated levels after two years of rapid appreciation. They have been exposed to higher mortgage rates, softer rental yields, and a flat-to-falling market for longer than they anticipated.
The regional breakdown
Loss rates varied significantly by city. Auckland recorded 19.9 percent of residential sales as loss-making, Wellington 16.7 percent, Hamilton 13.1 percent, Tauranga 9.6 percent, Dunedin 7.9 percent, and Christchurch 4.7 percent.
The median dollar loss figures showed a similar pattern. Wellington had the highest median loss at $86,120, followed by Auckland at $77,000, Tauranga at $50,000, Christchurch at $32,000, Hamilton at $30,000, and Dunedin at $15,000.
The relationship between these figures and the housing market's broader north-south dynamic is visible: cities where prices rose most aggressively in 2020-2022 have seen the sharpest adjustment, and those where the market has been more stable have lower loss rates.
Why this matters beyond the headline numbers
A 12.2 percent loss-making sale rate is meaningful but not catastrophic on its own. Properties are not assets that need to be sold on a fixed timetable — owners can choose to hold, to rent, to absorb short-term paper losses and wait for a recovery. The data does not capture people who chose not to sell because they could not accept the loss.
The more important signal is the trend. Less than 1 percent of residential sales were made at a loss in late 2021. The current figure of 12.2 percent represents a significant structural shift in the distribution of outcomes in the property market. It is most acute for apartments — a property type that tends to be disproportionately held by investors — and in the cities where the investor concentration is highest.
For someone who bought an apartment in Auckland in 2021 and is now selling in a market where comparable properties are priced similarly or lower, and where mortgage costs have risen substantially, the $77,000 median loss figure may understate the full cost when selling fees and any improvements made are included.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.