Aucklanders viewing properties elsewhere
27th Jun
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As another new month looms, so too do high home prices in New Zealand. In one of ASB quarterly survey's from last year, property costs are near the all time country high from ten years ago. Analysis shows this upward shift isn’t expected to stop anytime soon either.
Just as the lack of construction in America has started to drive up prices, the same rings true on this side of the world. “Supply of new housing has not yet picked up in response to stronger demand,” noted ASB chief economist Nick Tuffley. However, even with this higher level of demand, many Kiwis still feel it isn’t a good time to buy. So where is the interest coming from?
According to Bank of New Zealand’s chief economist Tony Alexander, it’s the foreign investors who are taking greatest notice of the market. The most attention is coming from the UK, followed closely by China, and then Australia. Overseas property investment is clearly a popular decision.
What’s interesting to consider, is the reason for choosing New Zealand? No doubt it’s a beautiful country, but if the primary goal is ROI, why not purchase multiple properties at a significantly lower cost in the United States, for the same price of one down under.