New Zealand Property Market Remains Weak

Buying property in New Zealand has long been the dream or plan for many an investor or potential immigrant because the country’s incredibly diverse geography, often idyllic landscape and famously nice people have made it a desirable destination for thousands of expatriates from all over the world which also makes the nation an interesting real estate investment choice as well.

With more than 200,000 Britons alone now calling New Zealand home, there’s no denying this country has its draws for investors and those looking to relocate.  But if you’re thinking about buying in New Zealand right now, you might want to put your plans on hold – especially if you’re seeking property investment opportunities.  There’s a slump in the market and according to most domestic reports it’s a rather big one!

Those looking to buy property in New Zealand will find the interest rates are rather high right now, despite a recent hold on them, and the property market is more than sluggish.  The downturn in the New Zealand property market is such that financial giant JP Morgan is expecting the country’s price growth to come to a screeching halt by the third quarter of 2008.

While this is a piece of bad news for investors looking to make fast money off New Zealand property, it could be good in the near future for buyers with a little patience.  This property market has been historically strong, so a rebound is not out of the question.  As the slump continues however, it’s quite possible that a buyers’ market will develop fast.

With estimates that the days-to-sell rates will only increase, buyers might soon find prices dropping to compensate.  With the August 2007 sales figures for properties at just over 6,300 compared to last August’s 8,500, sellers are likely to get a bit antsy if JP Morgan’s predictions pan out.

If you do want to buy investment property in New Zealand or emigrate to live in New Zealand, now’s the time to: -

• Study up on the buying process and get a feel for the regions you’re interested in.  New Zealand is a fairly small country, but its geography is more diverse than many potential immigrants realise.
• Start getting paperwork and finances in order for a purchase.  It doesn’t hurt to plan ahead in case a dream purchase comes up at the right price.
• Watch the market and properties you’re interested in very closely for favourable turns in pricing.
• Rent to get a real feel for living in New Zealand.  In fact, this is not a bad idea for any international relocations, but the timing is fairly perfect for this if New Zealand is the desired destination.

Those who watch and wait are likely to find they can strike while the iron is hot.  There is every indication that New Zealand’s real estate stock will rise once more, but it could take a while.

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