Country: New Zealand
Strong residential demand coupled with historically low levels of New Zealand housing supply, has helped boost New Zealand property values in recent months, making the New Zealand real estate sector an increasingly attractive investment proposition.
Long stuck in Australia’s shadow, New Zealand is now the ninth most searched for destination to buy a home abroad based on country page views, and property views, on HomesOverseas.co.uk - ahead of property in Australia (currently 12th most popular destination).
New Zealand has leapt from 13th – last month - to the ninth most searched for destination to buy a home abroad, on HomesOverseas.co.uk. Spring New Zealand property sales bounce
Despite the recent New Zealand property recovery, the traditional jump in the number of properties in New Zealand sold in spring failed to materialise, according to realestate.co.nz, largely due to a shortage of available residential stock.
The latest monthly survey of market activity, the New Zealand Property Report, reveals that listings are up just 7% to 13,550 homes in New Zealand compared to a 21% increase rise at the same time last year and 16% in 2007.
Alistair Helm, chief executive, realestate.co.nz, says: “We are seeing a certain confidence in the market through people searching on the site and also people listing their property.
“But the seasonal uplift in listings has not happened as it did in years gone by.”
A shortage of properties in New Zealand for sale - particularly in the three largest centres – has prevented the traditional spring surge in residential property market activity.
Low inventory levels and a rise in residential demand, has ensured that the New Zealand housing market is now firmly a vendors market, which has encouraged some sellers to increase asking prices.
Recent research compiled by the QV Valuation shows that the residential supply shortage has helped to increase the average price of a property in New Zealand since the New Zealand real estate market arguably bottomed out in April of this year.
New Zealand home values now remain 7.1% off the peak in late 2007.
New Zealand property building levels up 23%
Increased New Zealand property market sentiment has encouraged more housebuilders to boost residential output over the past six months. Fresh research released by Statistics NZ revealed that there was a 23% increase in the number of residential property approvals issued since May, which is in stark contrast to the fall in commercial building consents.
This represents a significant turnaround in trends throughout 2009, after residential building levels fell significantly early this year compared with a rise in commercial output.
Jane Turner, an economist at ASB, said that the jump rise in residential building levels came after extremely low levels of construction activity earlier this year.
Turner told the press: “Residential construction is poised to lift off its current low levels. However, the lift in housing demand has been relatively muted and the recovery in residential construction is likely to be subdued.
“The decline in construction activity has created a significant amount of slack in the economy and has been responsible for much of the unwinding in inflation pressures over the past year.”
The recovery in New Zealand residential construction activity reflects the national broader recovery in the New Zealand property market, and this should continue going into next year. Expect New Zealand property values to increase further, albeit at slow, healthy, pace of growth.
See Also: Alistair Helm, Marc Da-Silva, New Zealand, New Zealand Property Report, QV Valuation, realestate.co.nz
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