One-Third of Apartment Sellers Facing Losses Amid Resale Market Recovery

More than one-third of apartment owners are selling their properties at a loss, according to Cotality’s latest Pain and Gain Report. The report indicates that in the final quarter of 2025, approximately 36.9% of apartments sold resulted in sellers receiving less than their original purchase price. In contrast, the median resale loss for these apartments exceeded $84,000, while standalone houses recorded a median loss of $52,000.

Despite this challenging situation for apartment sellers, the broader resale market is showing signs of improvement. The report reveals that 88.1% of all existing properties sold nationwide during this period turned a profit, slightly up from 88.0% in the previous quarter. However, this figure remains significantly lower than the market’s peak in late 2021, when over 99% of resales were profitable.

Cotality’s chief property economist, Kelvin Davidson, acknowledged that while the loss figures for apartments appear concerning, such losses are historically more common in this segment. He explained that apartments typically accumulate smaller long-term capital gains compared to standalone houses, making them more susceptible to declines in weak market conditions.

“Despite that, the data does not point to sellers under pressure or fire sales occurring,” Davidson stated. He emphasized that the differences in performance primarily reflect long-term trends rather than an abrupt decline in demand for specific property types.

Market Outlook

The report suggests that while resale performance is still below the levels seen during the boom years, the downward trend in the market has slowed significantly. Davidson stated, “The market has entered a trough, which is consistent with how wider prices have performed in recent months. Prices have flattened out, and that stability is now flowing through to resale data.”

The national median resale gain during the December quarter was reported at $298,000, a decline from the late 2021 peak of $440,000, but still higher than levels seen prior to 2021.

Regionally, Auckland continues to experience the highest percentage of loss-making resales among major centres, with 17.4% of transactions resulting in a loss, down from 19.3% in the previous quarter. Wellington’s loss-making resales decreased to 15.4% from 15.8%, while Christchurch showed resilience, with only 5.3% of resales resulting in a loss.

In areas outside the main cities, Palmerston North reported the largest share of loss-making resales at 16.3%, up from 15.3%. Conversely, the Queenstown Lakes district saw its loss-making resales increase to 5.5% from 1.7%.

The report also highlighted that properties sold at a loss typically had been owned for an average of 3.9 years, while those sold for a profit had a median holding period of 10.1 years. Davidson noted that this holding period is the longest recorded in the data series dating back to the mid-1990s, which could indicate that sellers are waiting longer for favorable market conditions to maximize their sales.

“Buyers still have pricing power, but the stock of listings has come down a bit in recent months, so a bit more of a balance between buyers and sellers might be emerging,” Davidson added.

Looking ahead, he suggested that another quarter or two of stable results could indicate a genuine turning point for the market. Emerging signs of rising sales volumes and a slight decrease in listings may support house price growth in 2026. Lower interest rates are also expected to bolster demand, although any increase in prices is likely to be gradual rather than abrupt.

In summary, while a significant portion of apartment sellers are currently facing losses, broader trends in the resale market suggest a potential stabilization and gradual recovery on the horizon.