New Zealand Property Investment Wealth Secure

According to the latest real estate market analysis from New Zealand, property investment wealth is secure. Those who have already invested in the property sector will retain the capital growth made so far and this wealth is likely to grow slowly or stagnate but not be eroded over the short to medium term.

According to the latest real estate market analysis from New Zealand, property investment wealth is secure.

Those who have already invested in the property sector will retain the capital growth made so far and this wealth is likely to grow slowly or stagnate but not be eroded over the short to medium term.

Although it has been reported that the overall economy of New Zealand is headed for a slow down, the fortunes obtained by property investors in New Zealand will be secure as a direct result of the fact that the housing boom will slow and new build projects will stop.

The sharp reduction in property availability will mean established real estate will retain its desirability and those who have achieved capital and equity gain through their properties will maintain their wealth.

According to OECD and domestic expert opinion in New Zealand the overall medium term outlook for the economy of the country is that it will actually expand by over 3% per annum for around the next five years.  Therefore the doom and gloom merchants who have been predicting an economic black period and a crash of the housing market are likely to be proved wrong!

The growth in the property market in New Zealand has been strong, intense and universal since 2001.  Those home owners who have sat on their property and resisted the urge to trade up or re-mortgage are now in a very comfortable financial situation and their intrinsic property wealth is secure.  This bodes well for the economy of New Zealand as it means household confidence is remaining strong and retail spending is not dropping off.

According to the Real Estate Institute in New Zealand, May 2005 again saw house price increases across the country indicating that the slow down has not begun in earnest.  Average prices were up some NZD 3,000 on the previous month with gains in Taranaki for example up a staggering NZD 51,113.  In March the property market reached record highs but April saw a significant drop in average house prices.  The May figures are seen as a correction of that and also as an indicator that despite very short term fluctuations, the property market across much of New Zealand remains active and strong.