With low prices for large homes set in breathtaking countryside or pretty cities, it’s no surprise that the property market in New Zealand is performing well…
A common view among property market commentators across a range of industries is that house prices could rise by between five and ten per cent over the next year, albeit at a slower rate than the rises experienced last year.
Some of the factors behind these predicted rises include a stronger than expected jobs market fuelling demand for housing, with businesses reporting that labour shortages are the main factor limiting their growth. As a result, the public feels more confident about the stability of their employment options and therefore more confident about taking on debt, such
as first time home ownership, or moving up to their next property. Interest rates also appear to be stable, which is encouraging the local market, while there’s a constant and increasing interest from international buyers, especially from the UK.
Buying a lifestyle
As a country of just over four million people (one million of whom live in Auckland, the largest city in the country), New Zealand offers the opportunity to live in a spectacular environment with easy access to lifestyle options such as beaches, lakes, mountains, and other sweeping vistas. This is attracting many skilled migrants to the country who are looking to achieve a better life/work balance, and the price of New Zealand property is a major factor in influencing UK migrants to relocate Down Under.
When you combine the access to lifestyle options with the safety of the country and a price level that, by world standards, is very attractive, it’s no wonder that the market is buoyant. The size of the ‘sections’ that houses are built on is often seen as being generous by overseas buyers. When it comes to hotspots, ‘lifestyle blocks’ of around 10 acres in thecountry are proving extremely attractive to overseas buyers who aren’t interested in running a farm, but instead are keen to live in the country, with all the advantages that a rural lifestyle rings. For many people, who are used to living in densely populated areas, this provides them with a dream way of life.
For people from the UK in particular, New Zealand has other attractions, being a safe, clean, green, English-speaking country. Issues like exchange rates have a limited influence as most offshore enquiry isn’t driven by the dollar but rather by lifestyle choice. Also, 85 per cent of mortgages in New Zealand are on a fixed rate basis, so fluctuations in the interest rate have little effect on buyers. Areas close to water, whether that’s beaches or lakes, are always sought after. Lifestyle locations, such as Queenstown in the South Island, are always popular, as is the Bay of Plenty area in the North Island. Auckland remains the most expensive city to purchase property in, with the central and eastern suburbs, along with any location near the water,selling at a premium.