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'Mum and dad' investors are back in the property market

A key buyer group has been making a noticeable comeback.

Kelvin Davidson
Last updated: 13 October 2025 | 4 min read
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AI summary

‘Mum and Dad’ investors are returning to the New Zealand property market, with their share of purchases rising from 21% to nearly 25%. This nationwide trend is driven by smaller investors buying their second property or expanding a small portfolio, often favouring new-builds to bypass lending rules.

Two key factors are encouraging this comeback:

- The full reinstatement of Mortgage Interest Deductibility.

- Lower interest rates reducing cashflow top-up requirements.

This trend is expected to continue into 2026.

The data shows a clear return

Who are they and what are they buying?

What’s driving the comeback?

Author

Kelvin Davidson Kelvin Davidson
Chief Property Economist, Cotality