C21 NEW ZEALAND NEWS

REAL ESTATE KEEPS TRUCKING ALONG THIS WINTER

B Y DERRYN MAYNE, CEO, CENTURY 21 NEW ZEALAND

The underlying strength of New Zealand real estate continues to prove itself. Overall, it remains well up on last year, and comfortably up on previous months. Any pundits preaching doom and gloom back in March and April are still miles off being proven right.

When the fi rst lockdown was announced at the end of March, some were predicting property price falls of between 10 to 15 percent. But the latest OneRoof Property Report, released earlier this month, revealed 70 percent of New Zealand's 1,729 suburbs now have higher median prices than at the same time last year.

This follows REINZ last month releasing its Monthly Property Report for June which shows median house prices across

New Zealand up by 9.2%, compared to June 2019.

At the same time, nationwide median prices compared to the previous month, May, were up by 3.1%. REINZ confi rmed that June marks 105 months in a row of yearon-year median prices increases.

Amazingly, every region has seen an increase on 12 months ago, with 10 out of 16 regions lifting since May.

The fact that the wider Waikato region achieved a record annual price increase of 17.1% refl ects what we’re hearing. Century 21 offi ces in Tuakau, Huntly, Te Awamutu, Mangakino, and Turangi are telling us buyer demand remains strong and some great prices are still being achieved.

REINZ also reported the volume of properties sold in June across New Zealand increased by 7.1% from the same time last year – representing the highest number of properties sold in a June month for four years. Listings are also up – again to a four year high for June.

As REINZ chief executive Bindi Norwell observed late last month: “Kiwis returning home to New Zealand from offshore destinations continue to play an important role in the market, with some agents reporting family members here in New Zealand visiting open homes on behalf of overseas family members. Other agents are reporting exparts buying properties sight unseen, similar to stories we heard last month.”

It’s positive news for overall sales prices, as well as the number of transactions and new listings. However, our agents are still screaming out for more stock.

Demand is strong helped by record-low interest rates, many expats returning, lower deposits now required, and a spike in overall confi dence during winter while the country successfully managed Covid-19.

"Amazingly, every region has seen an increase on 12 months ago, with 10 out of 16 regions lifting since May."

– DERRYN MAYNE

While it’s a case of ‘so far, so good’ the industry is conscious that many households have been on six-month mortgage holiday, the second round of wage subsidies is coming to an end, and Auckland has had another lockdown.

There is a still a lot to play out, and of course we have a General Election coming up which normally slows activity. If I were contemplating selling my property, I wouldn’t wait for summer, I’d be going now with all the market fundamentals in great shape.