Winds of change in the market

The market and sentiment has shifted — it’s an interesting time for agents, vendors and buyers to navigate. As always, I am proud to see the resilience and adaptability of our members nationwide who continue to shape our robust profession.

Headwinds that gathered over 2021 — including rising interest rates, reintroduction of LVRs, changes to the Credit Contracts and Consumer Finance Act (CCCFA), and changes to investor taxation law are impacting the market. Price growth has eased in many regions, sales activity is down, buyer demand is subdued, and there has been an increase of stock on the market. Read more about the shift in market sentiment on page 20. The change of pace requires adjustment, and it’s the role of real estate professionals to have honest and transparent conversations with their vendors and buyers — REINZ Ambassadors provide valuable advice on how to have those conversations on page 22.

While we can’t predict the future, we can prepare for the most likely outcomes. For that reason, it is fundamental for the profession to be forward-looking and identify trends happening here in New Zealand and beyond and gauge how they may affect real estate. REINZ recently commissioned research to identify and explore the megatrends likely to impact the real estate market over the coming decade. Understanding these trends and their short-term and long-term effects gives us insight into where the market may be heading, the challenges and opportunities likely to arise, and importantly, what we can do to ensure an enduring and future ready profession. Jump into the nine megatrends we’re tracking on page 14.

There’s been exciting developments in the property management sector recently with progress on the long called for proposed regulation of property managers. REINZ has actively engaged with the Ministry of Housing and Urban Development (HUD) on the regulation of the property management sector. In early February, the Government released a discussion document outlining proposed regulatory options. In April, I hosted a live webinar with panellists from MBIE to run through this proposed regulatory framework. Read more about the progress of the regulation on page 60.

With so many changes occurring in the property management space — and more to come — we felt it important to take a moment to step back and recognise the dedication and resilience of property managers over the past year. REINZ is delighted to champion the first National Property Managers’ Day on Wednesday 6 July — we hope you’ll mark the day and the people it celebrates with us. Read about what the day will entail, how you can get involved, and some inspiring profiles of property management champions on page 12.

REINZ filed strong and detailed submissions on the review of AML/CFT legislation and has engaged extensively with the DIA. Our advocacy was strongly supported by the significant response to our request for feedback and our members’ unanimous opposition to the proposed introduction of due diligence on purchasers. An initial feedback session to officials from the DIA was held, along with further consultation with the real estate industry in April. Read more about this on page 62.

As we head into the colder months and experience a slowing market, it is important to take care of yourselves, and those in your team. It’s been a busy and challenging time for the profession over the past year, so now is a great time to check in with yourself and those around you. As always, if there is anything REINZ can do to assist, please reach out to us.

Jen Baird

REINZ Chief Executive