Property trends stories
Record prices and a 14-year sales high show New Zealand's housing market is still racing ahead despite tighter lending rules and tax changes.
Landlords may avoid selling despite new tax rules, as CoreLogic says capital gains and Brightline liabilities outweigh the extra borrowing costs.
Investor demand is set to ease as tax changes and tighter lending curbs threaten to cool the market, though prices are still rising fast.
Sales surged 14.6% year on year in February as buyers rushed to secure homes before loan-to-value restrictions returned in March.
Men own 31,000 more homes than women in New Zealand, underscoring how the gender pay gap is limiting access to property.
LVR curbs and tighter investor lending are expected to cool New Zealand house prices, after Tauranga posted a monthly fall.
Average household incomes rose just 1.3% last quarter, leaving New Zealand house prices at their least affordable level since records began in 2004.
New Zealand’s housing market remained brisk in January despite a modest month-on-month price fall, with sales and auctions both at multi-year highs.
New Zealand home values rose 2.2% in January as tight supply and low rates drove a rebound in Christchurch, Auckland and Queenstown.
Possible tighter rules could curb investor demand as mortgaged buyers regain a 27% share of the housing market, CoreLogic says.
Record shortages of homes for sale are fuelling the pressure, with New Zealand’s median house price climbing to a fresh high for the fourth month.
Low rates, fiscal stimulus and reopening borders should support New Zealand property values in 2021, though office and retail risks remain.
New Zealand’s housing boom lifted values in almost every main centre, with Auckland now boasting 117 suburbs above the NZD $1 million mark.
Falling unoccupied stock and pandemic demand are making holiday homes harder to buy, though some coastal spots still fall below GBP £500,000.
Home sellers using an agent are getting an average 15% more than private vendors, the biggest premium seen by REINZ in 18 years.
A shortage of homes for sale is fuelling record house prices and leaving buyers with fewer options, despite the busiest November in 13 years.
Affordability is worsening for first-time buyers as house prices outpace incomes, deepening the housing divide and fuelling political pressure.
Low rates, pent-up demand and $85 million of infrastructure spending are helping Queenstown’s property market recover after Covid hit confidence.
Only a third of New Zealand homes now qualify for the Home Start grant, intensifying calls to lift price caps before summer buying picks up.
Listings fell to record lows as buyers pushed Auckland’s median house price to GBP £1 million and nationwide sales hit a 14-year October high.
