New zealand property market recovery

| July 3, 2009

Despite New Zealand shivering in the midst of their winter whilst over here in Blighty we bask in the sun – I don’t remember ever writing that before – the country’s property market looks to be thawing – with new research showing that stability is returning to the residential sector

The New Zealand government’s fiscal position was better than forecast in May mainly due to improved returns from investment funds

NZ property sector recovery

Latest figures show the Auckland housing market continued to stabilise in June, leading to bullish noises from within the industry and suggestions naysayers may be missing the mark.

A net 38% of respondents believed it was a good time to buy compared to only a net 30% in the March quarter.

Real estate company Barfoot & Thompson, which says it sells around one in three Auckland residential homes, said the "golden autumn" the Auckland housing market had been enjoying since March continued in June.

"The Auckland housing market has made a remarkable recovery from the challenges experienced as a result of the past 18 months of economic downturn," Barfoot & Thompson managing director Peter Thompson said.

Recovery new zealand market

For the past six months the average sale price was $NZ510,896 ($A405,698), close to last year’s 12 month average price of $NZ513,597 ($A407,843).

The June rental average was close to the $NZ387 ($A307.31) average of the past six months, which was in line with the average for 2008.

Around 70 per cent of New Zealand´s new wealth is invested in the country´s residential property sector, which is estimated to be worth in the region of £233 billion.

"It looks like by September this year we are likely to have a growing number of spring home buyers chasing a falling number of properties on the market.

"If the downward trend in inventory continues, at some point this could lead to price pressure creeping back into some pockets of the market. This has to be the eventual outcome.

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Category: commercial rpoperty, home loans, investment property, New zealand, NZ, property outlook, Property sector, Real Estate

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