Property Market stories
Government help may be needed as first-time purchasers’ share of the market falls to its lowest level since 2018, CoreLogic says.
Sales fell by more than 2,500 from March as investors and first-time buyers took a wait-and-see approach to tighter lending rules.
Signs of cooling are emerging as quieter open homes and more auctions passing in are expected to slow gains after a red-hot year.
Investor borrowing has already been curbed, as new housing rules begin to slow sales and cool the market further in 2021.
Investors in Manawatu/Wanganui saw 25.3% capital gains and 4.0% yields, making it the country’s standout residential market.
Landlords may avoid selling despite new tax rules, as CoreLogic says capital gains and Brightline liabilities outweigh the extra borrowing costs.
Investor demand is set to ease as tax changes and tighter lending curbs threaten to cool the market, though prices are still rising fast.
Vacancy has risen across Auckland and Wellington, while retailers and landlords wait to see whether city centres can recover from lockdown losses.
Vacancy rose across Auckland and Wellington offices, shops and warehouses in 2020, but low rates and investor demand kept yields firm.
LVR curbs and tighter investor lending are expected to cool New Zealand house prices, after Tauranga posted a monthly fall.
Resource consent has been granted for a planned Auckland office development that could retain 1.8 million kg of concrete and preserve heritage features.
New Zealand’s housing market remained brisk in January despite a modest month-on-month price fall, with sales and auctions both at multi-year highs.
House prices are likely to cool after the Reserve Bank reinstated loan-to-value curbs from 1 March amid stability concerns.
New Zealand home values rose 2.2% in January as tight supply and low rates drove a rebound in Christchurch, Auckland and Queenstown.
Possible tighter rules could curb investor demand as mortgaged buyers regain a 27% share of the housing market, CoreLogic says.
House prices could surge 30 per cent in three years unless regulators curb lending as ultra-low rates fuel debt and investor demand.
House buyers and investors face tighter mortgage rules from 1 March as the Reserve Bank warns high-LVR lending is rising again.
Record shortages of homes for sale are fuelling the pressure, with New Zealand’s median house price climbing to a fresh high for the fourth month.
Low rates, fiscal stimulus and reopening borders should support New Zealand property values in 2021, though office and retail risks remain.
New Zealand’s housing boom lifted values in almost every main centre, with Auckland now boasting 117 suburbs above the NZD $1 million mark.
