August 2025 brought mixed results for the Palmerston North property market. While the median sale price rose, sales volumes stayed flat. With spring here and interest rates trending down, the local market is showing early signs of renewed confidence.

Palmerston North Snapshot

• Sales: 91 (same as July and August 2024)
• Median Sale Price: $630,000 (↑ from $605,000 in July)
• Median RV of Sales: $610,000
• Median Asking Price: $624,000
• Median Days to Sell: 36 (slightly faster than July)
• Listings: 340–360 (↑ 30–40 on recent months)
• High-End Sales: 4 homes sold above $1M
• Sections: Only 1 residential section sold in August

Most activity is being driven by owner-occupiers and first-home buyers. Investors remain cautious. Presentation is proving critical, well-maintained, well-marketed homes are holding value; overpriced or poorly presented stock is being discounted.

Neighbouring Markets

• Feilding: 26 sales; median $569,626 (↓ from $610,000 in July); median days to sell 50; listings 125–135.
• Levin: 34 sales; median $500,000 (↓ from $506,000); days to sell 58; listings 190–200.
• Foxton Township: 3 sales; average price $341,000; ~150 days to sell.
• Foxton Beach: 7 sales; average price $553,857; ~66 days to sell.
• Ashhurst: 4 sales (included within Palmerston North totals).
• Tokomaru: 1 house sold at $439,000; 1 section sale.

How We Compare with the NZ Market (REINZ)

• National Median: $761,000 (–0.5% YoY)
• Excl. Auckland: $690,000 (+1.5% YoY)
• Auckland: $964,000 (+1.3% YoY)
• Strongest: Gisborne +11.3% ($690,000); Southland +8.9% ($465,000); West Coast +7.8% ($385,000)
• Weakest: Wellington –6.9% ($740,000)
• Manawatū-Whanganui (region): $542,500 (+0.6% YoY)

Economic & Policy Factors

• Interest rates: OCR cuts expected before Christmas, improving affordability.
• Inflation: CPI +2.7% in Q2, household budgets remain tight.
• Planning reform: RMA changes could lift land values short-term but aim to ease supply over time.

Outlook

Spring should bring a lift in both listings and buyer confidence. For sellers, realistic pricing and strong presentation are more important than ever. For buyers, the combination of easing rates and greater choice could make the coming months a good time to secure a home.

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Related reading: Marketing your property · Signing an agency agreement