Buyer?sMarket InNewZealand

A noticeable increase in international luxury buyers became apparent beginning in June 2022 in New Zealand,says Scarlett Wood, senior director of international business,New Zealand Sotheby?s International Realty New Zealand opened its borders to visa-waiver countries in April 2022 and to the rest of the world in July 2022,Wood says In addition,the government lifted mandatory quarantine requirements for returning New Zealanders

?The fact that people know they can travel freely in and out of New Zealand is one important factor,?Wood says ?Many people who have been residing offshore previously with New Zealand residency status have shown interest in relocating back to New Zealand.?

The mix of luxury buyers in New Zealand includes Americans,Taiwanese, Singaporeans,and Australians looking for primary homes and investment properties in Auckland and for vacation properties in Queenstown,Wood says She anticipates that Chinese buyers will return as China relaxes its border controls

?Offshore buyers find New Zealand very tax-friendly,?Wood says ?Of the buyers I?m working with in Auckland,they?re either looking for residential homes in elite suburbs such as Remuera,which is close to private schools,or in Herne Bay,which continues to hold the highest sale price in New Zealand?

Investors are looking at new high-rise apartments with unobstructed sea views in the central business district,Wood says ?Some of the new high-rise apartments offer foreign-buyer exemptions,which allow non?New Zealand, Australian,and Singaporean purchasers to own and invest here,?she says.

For example,the Seascape development in Auckland will be the tallest residential tower in New Zealand when complete Its 221luxury apartments all face the water and are priced from NZ$925,000 to more than NZ$9 million

Foreign buyers are also looking at ski homes in Queenstown and retreat properties in Abel Tasman,Wood says She sold a contemporary-style Queenstown house with views of Lake Wakatipu and the ski slopes to a foreign buyer who flew in to visit several properties as soon as the pandemic lockdown ended

?The market has definitely shifted to a buyer?s market,?Wood says ?However,the luxury end of the market remains strong and unaffected by the increased interest rate and global slowdown?

Singapore?s financial-hub status attracts them to set up a business and/or a family office here,?Cha says ?Some see Singapore as a safe haven to park their funds as well as for wealth preservation and capital appreciation There are also those who bought for legacy planning as they send their kids for education in Singapore?

Among some of the company?s recent sales are a S$345 million villa sold by a Taiwanese owner,a S$907 million apartment purchased by a Japanese buyer,and a S$85 million apartment sold by a Norwegian permanent resident of Singapore to a local resident

?Generally,most of the ultra-high-net-worth investors make use of housing loans when interest rates are low,so as to achieve better returns on their capital in other investment options,?Cha says ?When interest rates go up,they simply take fewer or zero loans They buy into luxury real estate as an investment primarily because they know the capital values will appreciate in the long term due to location,scarcity of supply, and good and efficient design?