FEATURES • HOUSING COMMENTARY
Property boom continues The economic drivers for further growth all look strong, and the latest round of data supports this likelihood, writes Daniel Smith. BY DANIEL SMITH
W
hat a year 2020 has been. When Covid-19 hit our shores, and New Zealand definitively shut up shop in late March, the doom and gloom merchants were out in force, predicting a vertiginous drop in house prices. The nation was shut off from the rest of the world, and a slide downwards seemed likely. But it seems that it takes more than a pandemic to keep Kiwis down, especially when it comes to housing. With New Zealanders returning home by the thousands, a loosening up of LVRs, and people who still had jobs looking for places to spend money in lieu of overseas holidays, the housing market has been running red hot.
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While some pundits predict a slight slowdown once the Reserve Bank reinstates LVR restrictions earlier than announced (March rather than May 2021), which will affect higher-risk investors with equity lower than 30%, economists don’t foresee a housing correction in the next few years.
Prices still on the up The upward trajectory that we have seen over recent months has consolidated into record-breaking highs up and down the country. Data from Realestate.co.nz shows all-time high average asking prices in six regions. Year-on-year, the national average asking price also increased by 12.4% to $772,288.
‘The last time we saw sales volumes of this magnitude was back in May 2016 when the market was very strong’ _ Bindi Norwell This price hike was not just focused in the main centres, with data showing all-time average asking price highs in six regions: Auckland, Waikato, Bay of Plenty, Hawke’s Bay, Wairarapa and Manawatu/Whanganui. Cause for
