Aucklanders viewing properties elsewhere
27th Jun
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Ph 0800 828 222
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Once again house prices are on the rise in New Zealand. According to an article published in the Herald on 15 February, the national average is up 9.6% from last year. In major centres, buyers can be expected to pay a median price of between $380,000 and $550,000. The reason for this, 
according to one ASB Economist, is an imbalance between supply and demand: there's a high number of buyers, and a low number of listings. For this reason many sellers have chosen to go to auction with their listing; in fact, one out of every five houses in Auckland is now sold this way.
This news doesn't bode well for property investors. Not only will they being paying a high price for property, but they'll often have to engage in a bidding war to secure any home of interest. Further, the return on investment will likely be minimal at best. Investors stand to make a mere 1-2% ROI in New Zealand, compared to property investment overseas, where they could generate a profit of up to 15% annually. Add to this the availability of houses, at a fraction of the price, and the choice becomes clear: America truly is a land of opportunity.