Tag Archive | "New Zealand"

New Zealand Property Sales Hit Four Year High

The residential real estate market in New Zealand continues to enjoy great success. The market reached its highest point in four years in January, starting off 2012 in strong fashion. With limited supply, and growing demand, the market will likely continue to perform beyond expectations.

 

While prices and sales are up in New Zealand’s big cities, rural areas in New Zealand are struggling to keep up. In fact, prices and sales are actually below where they were five to ten years ago. The numbers for that sector continue to drop slightly month after month. There is hope, though, that the limited supply numbers in the urban areas will drive more people to consider both suburban and rural areas of New Zealand.

 

Prices and sales in the urban districts of New Zealand are more than compensating for the rural and suburban areas. In fact, residential property values and sales are up nearly three percent nationwide year-over-year.

 

Sales have picked up since the start of 2012, though it should be noted that many buyers are still choosing not to commit and buy until they find what they would consider the perfect residence.

 

Auckland has shown the fastest and strongest growth in New Zealand thus far in 2012. North Shore has also performed quite well. The market is expected to remain strong for at least the first half of 2012 due to limited supply. Houses continued to be picked off the market, driving many homebuyers to buy now instead of waiting for a slightly more desirable home to hit the market.

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Sales Increase but Prices Fall in New Zealand Property Market

The residential real estate market in New Zealand experienced a strong twenty percent increase in sales during the year 2011. Despite the increase in sales, however, prices dropped more than three percent on average.

The sales volume was the strongest it has been in more than five years for many regions in the country, particularly in Auckland, Taranaki, and Otago. Only two regions in the country experienced a decline in sales volume over the past year.

Prices did increase in the past month for many of the regions, though during the year as a whole, prices experienced a slight decline.

December marked one of the strongest months that New Zealand has had in years. In fact, some areas experienced sales increases of more than forty percent for the month of December.

As the number of sales continues to rise at an unprecedented pace, it is likely that prices will once again start to increase. Demand is starting to outpace supply, which will thus positively impact price growth across the country.

During the month of December, regions such as Auckland and Christchurch experienced price increases of five percent or more. In Auckland, the average home price jumped to more than four hundred and eighty thousand dollars. The price of the average home in Christchurch is now up to roughly three hundred and fifty thousand dollars.

Analysts believe that the New Zealand residential real estate market will continue to improve, and that the overall increase in sales will lead prices to continue their growth past their previous peak experienced in 2007.

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Low Interest Rates Have Positive Impact on New Zealand Property Market

The New Zealand residential real estate market continues to perform well, as prices are on the rise. The market’s performance is in sharp contrast to some of the world’s largest markets in the United States and Europe.

Analysts cite two reasons as to why New Zealand’s market continues to produce strong results. Interest rates continue to remain low despite the flourishing market. In addition, mortgage loan affordability is rising, as banks are not making loan restrictions impossible as they are in other nations.

With lower interest rates, owning a home is becoming far more likely for many, as monthly costs are kept down. Just five years  ago, it took roughly seventy-two percent of one’s income to pay the mortgage on a home. That number has since dropped to fifty-two percent in the last month.

Bank rates for mortgage loans continue to drop, as many banks are watching the possibility of a European debt crisis very carefully. Homebuyers are taking advantage of the lower rates, as more homeowners continue to upgrade, thus providing for a healthy real estate market.

Housing affordability in some areas has dropped, as prices are beginning to hit astronomical levels. With that said, there are many other areas in New Zealand that are performing at levels stronger than ever.

Analysts predict that the numbers will continue to be strong around the country in the coming months, as interest rates will likely remain at low levels, and overall performance continues to exceed previous expectations. As homeowners continue to buy and sell, the residential real estate market will continue to achieve strong results.

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New Zealand Home Prices Drop

After reaching a two-year high, prices in New Zealand’s residential real estate market fell during the month of October. The market had been experiencing fairly strong gains over the past year, though continued worries about the potential debt crisis in Europe has started to finally take its toll.

There were hopes that the seasonal change would positively impact property sales and values in New Zealand, though that has certainly not been the case. Many prospective homebuyers are opted not to take on more debt over fears that the European debt crisis will once again become a worldwide issue.

As buyers are more becoming more hesitant to purchase new properties, both values and sales volumes are expected to fall further. Many buyers are beginning to more closely evaluate the pricing of properties in order to determine if they are over-priced.

Analysts believe that the drop experienced in New Zealand may extend out to other countries as well. While the European debt crisis has had an impact on European nations and the United States, its impact is now beginning to spread across the globe, as buyers become more and more cautious of the debt that they add to their bottom line.

House prices fell 0.3 percent in New Zealand in comparison to the previous month. Prices are expected to continue dropping in the coming months. There has been no indication as to how long the European debt crisis fears will last, and as such, many nations are growing increasingly worried that there may be a double-dip global recession in the near future.

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Real Estate Sales in New Zealand Remain Steady

The residential real estate market in New Zealand continues to remain strong. Over the past six months, the number of sales has increased time and time again. The consistent sales have now led to a depressed inventory of residential properties in the nation, thus increasing overall demand.

As a result of the increased demand, sale prices are up more than three percent of last year, and are closing in on record-highs. The average sale price for a home in New Zealand is now over four hundred and twenty-five thousand dollars.

With prices continuing to rise, there has been an increase in the number of homes that has gone up for sale in New Zealand. The nation has seen a five percent increase in the number of homes being listed for sale, which can largely be attributed to the overall increase in demand.

While seasonal factors contribute slightly to the overall increase in home prices, the general consensus is that New Zealand’s residential real estate market remains one of the strongest across the globe. The success is expected to continue into the near future, and as such, prices will likely rise even further.

Only two regions in New Zealand experienced declines in overall home values. Marllborough and Southland both saw home prices fall more than one percent. On the other hand, the rest of the regions experienced growth greater than five percent.

New Zealand has clearly established itself as a strong seller’s market. There has been no indication as to whether or not a housing bubble is forming in the nation, though for most real estate officials, that is not a great concern at this time. As long as demand continues to outpace supply, New Zealand’s property market will remain strong.

 

 

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New Zealand Housing Market Showing Signs of Growth

The residential real estate market is once again attracting the attention of investors, as yields show signs of positive growth. After a brief decline in the residential real estate market following the height of its last boom in 2006, New Zealand’s housing market is clearly back on the rise.

Yields across the country increased, with only seven of the thirty-eight markets not showing some form of substantial increase. Recent earthquakes that have hit the nation generally affected those that did not see an increase in yield.

The increase in yields, which indicates growth in the housing market, has been attributed to the rising rent costs. Property values have managed to remain roughly eight percent lower than rental rates.

The decline in mortgage rates has also contributed to increased yields in the residential real estate market. While the fixed-rate mortgage loans are not quite at the level of the United States, they are still roughly two to four percent lower in New Zealand now than they were five years ago.

For many potential homebuyers in New Zealand, the lower monthly interest rate on their mortgage makes all the difference, as it could cut as much as five hundred dollars off a typical monthly mortgage payment.

With residential real estate properties looking more and more attractive to investors, it is likely that the housing market could result in another boom, though perhaps even bigger than that which occurred five years ago. Housing prices may continue to rise, particularly with the low interest rates. The increase in housing values will simply be one more indication that New Zealand has found its way out of the global recession.

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New Zealand Council Commerical Property Results

New Zealand Council Commerical Property Results

The latest result generated by New Zealand Property Council IPD has shown the recovering process of commercial property market. Although the market is growing but the pace of recovery is still slow. The initial recorded index was calculated about 10% while the closing result for the year ending March 2011 has shown a bit lower figure which is 5.9%. This result is actually the sum of 8.3% income return and -2.2% capital growths. However, as said by Mr. Connal Townsend, this result will help investors to develop a confidence in their mind about slow and steady recovering process.

The result has also been supported by different macroeconomics indicators like employment growth and growth in retail sales and it has been proved from the side of IPD managing director of Australia and New Zealand Anthony De Francesco. They predicted that the result is showing a positive direction of soft economic outlook in a less time period.

According to Mr. De Francesco, the recovery speed always vary from sector to sector and depends on the ups and downs of the market for example it would vary from an outperforming retail and office to any industrial sector. It has also been proved from a six month’s survey of the Property Institute that 64% majority of rural sector is expecting the improvement after next six months. Moreover, they are also demanding for the increase in the property value of rural areas. However, the survey taken across the institute’s member shows that the demand of current residential property sector in commercial and industrial sector will remain unchanged

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