Property Market

More Migrants Able To Buy Property – A Timely Boost

“Our agents are reporting more migrants at open homes who have recently been granted residency and are now able and keen to buy their first home in New Zealand,” says Tim Kearins, Owner of Century 21 New Zealand.

His comments come as Immigration New Zealand is busy processing and approving applications under the Government’s fast-track 2021 resident visa scheme which closed at the end of July. Those granted a resident visa can then purchase a house if certain criteria have been met.

“Without doubt this is a timely boost for the real estate industry. While many Kiwi citizens are standing back for now, our newest residents see a good opportunity to get into the New Zealand housing market. Having potentially tens of thousands of new buyers out there looking is certainly a positive for many vendors keen to sell well,” says Tim Kearins.

Reportedly, most migrants who applied for the 2021 fast-track visas are from the Philippines, China, South Africa and India. Most work in the construction, education, health, and primary industries sectors. The Government says interest in the simplified resident visa scheme has exceeded their expectations, with 85,000 people out of 215,000 now approved and able to put their roots down in New Zealand.

“While some are relatively new to the country, many have been here for several years but can only buy now because the scheme has effectively fast-tracked their residency. Their arrival into the market this winter is being particularly noticed by Century 21’s Auckland agents which is great given Auckland is at the sharp end of the slow down,” he says.

The Century 21 leader says many of the new migrant buyers are opting for new builds because they only need a 10% deposit, compared to 20% required for most buying an existing house. New townhouses seem to be a popular choice and price point, he says. “People see these acres of townhouse developments under construction and wonder who’s going to buy them and move in. Well, the good news is New Zealand’s newest residents are snapping up many, with firsthome buyers now also taking their opportunities to get onto the property ladder,” he says.

In the July Monthly Property Report, REINZ observed that first-home buyers are re-emerging with many agents also reporting renewed interest from investors.

www.century21.co.nz