REA Research Indicates Improved Consumer Confidence In Real Estate Sector

05 December

REA’s 2024 Consumer and Public Perceptions Research released today indicates that 88% of real estate consumers[1] and 82% of the general public have confidence in the New Zealand real estate industry overall – the highest result for that measure since the annual survey began in 2013.

General public confidence in key aspects of the real estate industry improved in 2024, reaching their highest levels since REA began surveying in 2013. The 2024 research found:

• 87% agree the real estate industry is professional
• 76% agree it is well regulated
• 75% agree it is well monitored

REA is the conduct regulator of the real estate profession and runs residential real estate consumer website settled.govt.nz. The research highlights that REA’s work has had a positive impact on consumers’ (buyers and sellers) confidence when undertaking real estate transactions:

• 88% of consumers felt more confident and 64% felt more knowledgeable after visiting REA consumer website, Settled.govt.nz
• 94% of those who visited Settled.govt.nz with a specific question found the answer
• 90% of consumers who read REA’s consumer guides on agency agreements or the sale and purchase agreement rate them as useful
• Consumers rate REA as trustworthy (79%), and agree that it provides information that is clear (77%), independent (78%) and accessible to everyone (83%)
• Consumers who are aware of REA are nearly twice as likely to rate their own knowledge of the real estate transaction process highly (59% vs 33% of those unaware of REA).

REA Head of Engagement, Insights and Education Katie Solomon says it was good to see these positive perception survey results despite challenging market conditions.

“REA’s vision is to see people confidently engaging in fair transactions with trusted real estate professionals. We support consumers with authoritative, independent information. This complements our work to regulate and educate licensed real estate professionals to help maintain professional standards of conduct across the sector.”

Ms Solomon welcomes the results and recognises the opportunity for REA to continue to promote and protect the interests of consumers in real estate transactions. “While the results of this year’s survey are pleasing, there is always room to do more. For example, confidence among consumers for whom English is not their first language is lower than the average. To help address this REA produces key consumer resources in seven languages[2], and is working to increase awareness of REA across New Zealand’s diverse communities, including increasing the accessibility of our consumer information. Our recently launched consumer guides in formats for the blind low vision community is another example of how REA supports consumers and licensees in real estate.”

Ms Solomon says licensed real estate professionals (licensees) play a key role in delivering positive consumer outcomes.

The research also provides insights into how licensees can improve their conduct. Poor communication, incorrect or misleading information, failure to disclose important information and issues with marketing were the most significant issues experienced by consumers. However, in the 2024 report only 15% of consumers reported an issue, compared with 21% in 2021.

REA Chief Executive / Registrar Belinda Moffat says:

“At the end of the 2024 financial year, there were 15,489 active real estate licensees who helped clients and customers with a wide range of real estate transactions. Over the same period REA received 361 formal complaints and of the licensees subject to a complaint decision that year, only 8% were found to have breached conduct standards.”

“It’s important for the public to know that real estate licensees are regulated, and the majority demonstrate a commitment to high professional standards of conduct. For those who don’t, REA is here to hold them to account through the complaints and disciplinary process we oversee.”

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 19 April and 14 May 2024 and had 723 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 (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 19 to 29 April, 2024.

All REA claims are based on research conducted by NIQ, June 2024, sample size = 723, National population.

[1] For the purposes of this research a consumer is defined as an individual who has successfully or unsuccessfully attempted to buy or sell property in the preceding 12 months

[2] English, Simplified Chinese, Hindi, Korean, Samoan, Tongan and Te Reo Māori

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