Aucklanders viewing properties elsewhere
27th Jun
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A leading New Zealand economist is warning that while property might remain a good investment in the near future, a correction is inevitable.
BNZ economist Stephen Toplis commented in the New Zealand Herald last week that property prices compared to rental returns in New Zealand were overdone by around 30 per cent.
“Are they likely to correct anytime soon? No because excess demand still exists and will probably do so for some time.
“But supply will come on stream at an ever accelerating rate over the next few years. Eventually that excess demand will be whittled down and that’s when the correction will come,” he said.
While a bubble may be forming in the NZ real estate market the USA looks in good shape. American Property commentator Mathew Partridge said property in the states is still relatively affordable, with prices nationally around the same levels as they were in 2001. He said while they were rebounding they were not in bubble territory.
The recovery there looks a lot more sustainable and so more attractive to investors.