Thank you, Eliot for your advice.
From what I could see on New Zealand soil map (
https://soils-maps.landcareresearch.co.nz) that the soil on the property is likely to be Perch-Gley Pallic, which is said to be "susceptible to erosion because of high potential for slaking and dispersion".
Since the arrival of European settlers 200 years ago, much of New Zealand native forest has been cleared for conventional farmland and I am guessing that this property has also endured similar fate. Not sure if the most recent large-scale effect on the land had been for pine forestry or not. However, gorse is one of the most efficient first-colonizers of open land, thanks to the British for bringing them in for hedge planting.
I would say that the deep-rooted nitrogen-fixing gorse which feature significantly on the slopes are the current ones holding the ground.
If I were to create terraces, they would be between strips of gorse to be left standing, also as nursery shelter strips. My plan is still to re-generate native forest and incorporate it with an edible forest as well. I am not sure how it will turn out but am open to ideas.
It is very tempting to dive right into it upon arrival, eager to get on the excavator to shape the land but I know it is good to observe for a while, like you suggest. I will definitely do smaller-scale trenching and see how it goes.
I would still like to hear more inputs about terracing on such a gradient from others, thanks.