Sydney leads a wave of Australian buyers scouting New Zealand real estate
Australian interest in New Zealand property has surged since the Australian government announced changes to capital gains tax and negative gearing settings in May, with new data from realestate.co.nz showing Australian users of the site up 163% year-on-year in that month, accelerating to almost 190% by August.
It's not just traffic that's risen – Australians are actively searching, enquiring, and bookmarking properties at rates well above last year's.
realestate.co.nz chief executive Sarah Wood (pictured) said the scale of the response caught the company by surprise.
"We expected the announcement to have a flow-on effect to New Zealand, but the scale and speed of the shift have been striking," Wood said.
That interest isn't just idle curiosity, either – unlike most overseas buyers, Australians face few legal barriers to acting on it: under the Overseas Investment Act 2005, Australian citizens and permanent residents are exempt from the consent requirements that apply to most foreign purchasers of New Zealand residential property, and are treated similarly to New Zealand citizens for standard house, apartment and townhouse purchases. Early signs of this shift were already visible in June, with buyers drawn by lower prices, no capital gains tax and no stamp duty.
Sydney leads the surge, but smaller cities are browsing harder
Sydney recorded the largest jump in users following the tax announcement, up 121.3%, while Brisbane and Perth grew more modestly at 41.5% and 40.8% respectively. However, users from those two cities are engaging more deeply once on-site, recording more sessions and saved properties per person than their Sydney counterparts – a distinction Wood said matters more than raw traffic.
"When people are coming back, saving properties and making enquiries, we're seeing behaviour that goes beyond a passing curiosity about what their money might buy across the Tasman," she said.
Auckland, Central Otago, and Canterbury drawing the most attention
Auckland, Central Otago, and Canterbury are attracting the most interest from Australian property hunters, with houses the overwhelming preference. All three regions also have plenty of stock on offer: Auckland's property stock was up 11.5% year-on-year in August, while Central Otago/Lakes District and Canterbury were among just four regions nationally to record new listing growth that month, up 1.9% and 3.6% respectively.
Wood said supply, pricing and currency conditions were combining to make New Zealand attractive right now.
"A strong supply of homes available, relatively flat prices and a favourable exchange rate will be of real appeal for those looking from over the ditch," she said.
For brokers and advisers on both sides of the Tasman, the trend points to a potential rise in cross-border enquiries and financing conversations, particularly around foreign buyer eligibility, currency exposure, and the practicalities of purchasing New Zealand property from overseas.
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