Falling Interest Rates Spark Renewed Interest in New Build Properties
CAMBRIDGE, NZ – Property investors are re-entering the market as falling interest rates and a lower Official Cash Rate (OCR) create favourable conditions for investment in new builds. Industry experts say the current economic climate could represent a turning point for both new and experienced investors looking to grow their property portfolios.
The Reserve Bank of New Zealand (RBNZ) recently reduced the OCR by 25 basis points to 3.50% on April 9, 2025, marking a cumulative 200 basis point decrease since August 2024. This move aims to stimulate economic activity amid global uncertainties, including new U.S. tariffs impacting trade.
As a result, borrowing costs have declined significantly. As of April 17, 2025, the lowest 1-year and 2-year fixed mortgage rates offered by major banks such as ANZ, BNZ, Kiwibank, and Westpac stand at 4.99% for borrowers with at least 20% equity. Six-month fixed rates are available at 5.49%, while 3-year fixed rates are around 5.19%.
These reductions in interest rates are already influencing investor behaviour. Property research firm QV has reported a "pre-wave" of renewed investor activity, as many begin to capitalise on the more attractive lending environment.
Why New Builds Are Gaining Ground
Newly constructed homes are proving particularly popular among investors due to their long-term cost advantages and regulatory benefits. Developments like those by ZB Homes, including Cambridge’s Abergeldie Estate, are attracting attention for several key reasons:
Attracting Quality Tenants: New homes with modern design and features are highly sought after by tenants, supporting tenant retention and timely rent payments.
Healthy Homes Compliance: All new builds already meet New Zealand’s Healthy Homes Standards, eliminating the need for costly retrofits.
Lower Maintenance: New construction comes with minimal repair costs and warranties such as the Master Builders 10-Year Guarantee.
Turnkey Contracts: Builders like ZB Homes offer turnkey options, meaning buyers don’t begin mortgage payments until the home is completed and ready to rent.
Spotlight on Abergeldie Estate
Abergeldie Estate, a new development in Cambridge, is emerging as a standout option for investors.
Homes in Abergeldie Estate offer competitive value, with brand-new terraced 3-bedroom homes starting at $1,095,000. By comparison, existing homes in Cambridge have a median sale price of just over $1 million, according to realestate.co.nz. Rental returns on these new homes are exceeding $820 per week, and early investors can take advantage of limited-time pricing discounts.
In addition to strong returns, Abergeldie offers a semi-rural lifestyle that appeals to families, retirees, and professionals alike—combining peaceful surroundings with proximity to amenities.
With lending rates dropping and the property market beginning to shift, now may be an ideal time for investors to act.
Partnering with experienced builders like ZB Homes can also ensure a smoother, more reliable path to market.
For more information or to request an info pack on Abergeldie Estate, visit ZB Homes.