Market Update 13 Oct 2025: OCR Drops to 2.5% - Why Off-The-Plan Buyers Should Pay Attention

Giving you exclusive insights into the New Zealand property market and keeping you updated with the latest in property investment concepts.

Property market update for October 13th, 2025. You can read last week's market update here.

Last week, the Reserve Bank of New Zealand made its boldest move in over a year: cutting the Official Cash Rate (OCR) by 50 basis points to 2.5%.

It’s a clear signal that the central bank is serious about reigniting economic momentum after months of sluggish growth and softening consumer confidence.

Finance Minister Nicola Willis welcomed the decision, calling it “more relief for families and businesses.” And while the headlines focused on household budgets and inflation targets, savvy property investors saw something else: a window of opportunity.

What the OCR Cut Means for Property Investors

The OCR is the lever that influences borrowing costs across the economy. When it drops, banks generally respond by trimming mortgage rates, making it cheaper to borrow, easier to qualify, and more attractive to act.

But this isn’t just about affordability. It’s about timing.

Lower interest rates tend to precede market recovery. They encourage movement, unlock stalled projects, and shift sentiment from cautious to confident. For off-plan buyers, those who commit to properties before they’re built, this environment is especially powerful.

Why Off-Plan Buying Thrives in a Falling Rate Market

When you buy off-the-plan, you’re locking in today’s price for a property that won’t settle for 12–18 months. That delay can work in your favour, especially when the market is poised to rise.

Here’s how:

• Developers offer sharper pricing (or incentives) early to secure pre-sales and unlock funding
  

• Construction milestones and rising comparables push up the value of similar stock
  

• You benefit from the “build premium” - the difference between your purchase price and the property’s valuation at settlement
  

Imagine committing to a new townhouse at today’s price. By the time it’s built, the market has moved, demand has returned, and similar units are selling for tens of thousands more.

That gain becomes paper equity you can use to refinance, leverage, or reinvest.

You can’t predict exactly how much build premium you’ll capture, if any, but in competitive markets, we’ve seen it exceed $100,000.

The OCR has a direct relationship with interest rates

Lock Today’s Price, Ride Tomorrow’s Rates

Off-plan buyers enjoy a two-pronged advantage:

• Price certainty now: You fix your purchase price before the market rebounds
  

• Rate flexibility later: You don’t need to lock in your interest rate until settlement, giving you time to benefit from further OCR cuts

  
  

This combination, capital growth plus lower cost-to-own, is rare. And right now, all indicators point to ideal conditions: falling rates, active developer incentives, and a market that’s quietly warming up.

What to Do Next

If you’ve been waiting for the right moment to act, this could be it. The OCR cut has shifted the landscape, and off-plan buyers are uniquely positioned to take advantage.

• Dive deeper into the strategy, risks, and timing in our full guide: How To Make Money by Buying Off-The-Plan Property

• Want to see how current interest rates stack up? Find Out The Latest Interest Rates Here

• Ready to map your off-plan strategy? Book a 15-minute call with our specialists, and let’s turn this rate cut into your next equity boost
  

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