Why Do Housing Prices Soar Despite A Covid Recession?

She claims that the sale-down represented about one-third her residential portfolio. Tammy Onekawa, a Hawke’s Bay investor, owns a number boarding houses. Onekawa says many larger investors have sat back in the past two years and are now “frothing at the mouth” as they eye rejoining the market. It means that rents will rise. “Buyers are more cautious than at 2021’s end, and vendors are reducing their price expectations based on year-end prices.”

What happened with the New Zealand property market?

The influence of these headwinds will undoubtedly be compounded by a deterioration in domestic financial conditions. It is widely believed that this review will have a major effect on credit availability by reducing underwriting standards. While this is a problem that only affects Australia, it would not be unusual for New Zealand subsidiaries to be affected. CoreLogic reports that New Zealand is now a buyers market, with house sales volumes at their a decade.

What happened with the New Zealand property market?

QV general manager David Nagel says anecdotal evidence suggests investors are disappearing from auction rooms and there is even a drop in first-home buyer presence. We represent your interests on important issues for your business. We promote the importance of the sector through a strong collective voice. One of the things I love about Property Council is that it’s not just a single group within the industry, it’s a really good mix. This balance ensures you get a range of viewpoints, expertise and opinion. Property is New Zealand’s largest industry, making up 15% of economic activity. Read more about her response here. Young Europeans enjoy the security of affordable city dwelling, while in NZ, housing is prohibitively expensive for many.

Last February, 8300 homes were sold but that fell 5500 last month while in Auckland, last year’s 2900 dropped to 1740. There is continued strong demand within the “relatively affordable” $300,000-$450,000 range. Tim Gibson, QV area manager, says that the primary driver of the market is still a shortage of residential listings and land. As a result, sales volumes are low and there is buyer panic on the market. “Rotorua has become popular with local and out-of-town investors in recent years due to the comparative affordability of housing and high yields. “Agents are not receiving as many enquiries from New Zealanders who live overseas. This could be due to vaccine rollouts and increased confidence that there is a way out of the worst effects of Covid-19.

Taranaki sales fell 41.3 percent annually from 206 a 121, the lowest February month sales count since records began. REINZ data showed national house sale volumes dropped 33 per cent annually but Auckland volumes fell by 40 per cent. For the first three months in 2022, Westland (11.2%) is at the top of the regional growth chart. Opotiki (10.7%), and Buller (10.4%) are close behind. At the other end of the spectrum, Hutt City (-5.2%) and Wairoa (-4.1%) saw the biggest drops in value this quarter. The average home price in Dunedin now stands at $659,447. This is 7% more than last quarter and 17.8% higher than last year. David Cornford, a senior consultant at QV, says that properties are still selling well despite the fact that there are fewer investors on the market. However, values are still strong.