REA research finds consumers are confident in real estate industry but lack of understanding of the process is key consumer challenge

The Real Estate Authority’s (REA) 2025 Consumer and Public Perceptions Research(external link), released today, found overall 86% of consumers (property buyers and sellers) have confidence in New Zealand’s real estate industry, but have less confidence in their own knowledge of the transaction process. 

Perceptions of the real estate industry overall are positive

• Consumer confidence in the real estate industry remains high at 86%.
• 83% have confidence the industry is well regulated
• 30% of consumers said they would recommend the licensed real estate professional (licensee) they dealt with to others, up from 25% in 2024.

REA Chief Executive/Registrar Belinda Moffat says it is good to see consumers have confidence in the real estate industry despite challenging market conditions.

“As the government conduct regulator of the real estate profession, we want to see people confidently engage in fair transactions with trusted real estate professionals. The high levels of consumer confidence in the industry reflects the hard work by many agencies and licensees to maintain high standards of conduct in a challenging market.”

However, while the research found that 43% of property buyers and sellers had some knowledge of the end-to-end real estate transaction process, only 46% felt they were knowledgeable or had a lot of knowledge of the process.

Consumer guidance produced by REA, and being kept well informed by the real estate agent were key contributors to real estate buyers and sellers feeling confident and empowered. 

The research indicated that 95% of buyers obtained some information before making an offer, and 71% of consumers considered environmental risks when buying or selling. However, fewer consumers are undertaking thorough due diligence of a property before making a purchasing decision than last year. Only 44% obtained a building inspection report, only 37% obtained a LIM, and only 34% obtained the record of title and/or council file. 59% of buyers engaged a lawyer before making an offer.

Katie Solomon, REA’s Head of Engagement, Insights and Education says buying and selling property is a complex process and it is important for consumers to have good information about the process and what they need to do during a transaction.

“Knowledge of the process, including understanding methods of sale and how to check a property for risks and issues is key to consumers making confident transaction decisions. We strongly encourage all buyers to undertake careful due diligence on the property before they buy, and to engage the services of a lawyer early.

The research shows that the complexity of the process, the real estate agent’s manner or lack of support are the main factors behind consumer sentiment.

At REA we provide a wide range of free consumer information through our consumer website Settled.govt.nz and guides in many languages and formats on the buying and selling process. The research indicates the value in these consumer resources.”

Consumers trust REA’s information resources

• 94% of consumers who interacted with Settled.govt.nz felt more confident about participating in the real estate transaction after visiting this website.
• 96% of buyers who received the REA Residential Property Agency Agreement Guide found it useful.
• 94% of consumers finding the REA Residential Property Sale & Purchase Agreement Guide useful.
• 62% of consumers who interacted with both REA and REA’s consumer website, Settled.govt.nz, rate their knowledge of the end-to-end process highly, well above the 46% overall consumer average.

The Real Estate Agents Act requires licensees to provide consumers with REA’s statutory guides to the residential agency agreement and sale and purchase agreement before they sign either contract.

The research also highlighted the key role real estate licensees play in providing information to consumers about the process.

Licensees explaining the transaction process helps consumers feel empowered

• Finding the process complicated or confusing was the most common reason cited by consumers for feeling unempowered and unable to participate effectively in a real estate transaction (20%)
• Licensees are the most commonly reported source for consumers to seek information about the process (56%)
• Good explanations from the licensee was the most common reason for consumers feeling very empowered during a transaction (22%)

Ms Moffat says REA supports real estate licensees to explain the complexities of the transaction process to clients and customers through guidance and education.

“The principles of client and customer care underpinning the Code of Conduct for licensees that REA oversees requires licensees to exercise skill, care and diligence, and to treat all parties fairly. This includes disclosing known defects, encouraging parties to obtain legal and professional advice, and communicating in a timely way. Our guidance and education programme is focused on these core responsibilities.

The research illustrates the importance of licensees fulfilling their conduct obligations, and consumer knowledge being critical to fair real estate transactions.”

 

ENDS
For more information contact Aaron Alexander, Communications and Engagement Manager, Real Estate Authority, on 027 237 7196 or via media@rea.govt.nz

 

About REA
The Real Estate Authority (REA) is the independent government agency that regulates the conduct of licensed real estate professionals in New Zealand. We license people and companies working in real estate, provide oversight of the code of conduct (external link)(external link), oversee the complaints and disciplinary process for poor conduct by licensees, provide education and guidance to licensees to assist them to meet their regulatory obligations, and provide information to consumers about the real estate transaction process. REA is governed by a Board. The Chair is Denese Bates KC. REA Chief Executive is Belinda Moffat.

 

About the research
The latest Annual Perceptions Research was conducted by NielsenIQ on behalf of the Real Estate Authority. The survey was carried out in two parts. Part one was in field between 14 May and 2 June 2025 and had 729 respondents. Part one of the survey consisted of people who bought, sold, put an offer or received an offer on a property in the last 12 months using a licensed real estate professional (referred to as ‘consumers’). Part two surveyed 700 people of the New Zealand general public. The fieldwork for part two of the survey took place between 20 and 29 May 2025. All REA claims are based on research conducted by NielsenIQ reported to us on 22 July 2025. A full copy of the report can be made available on request.