New Zealand Property Market Remains Strong and Positive

Despite a shaky end to June on New Zealand’s stock market and comments from some in the property industry that certain areas of the residential real estate market are overvalued, the New Zealand property market remains strong and positive going in to the second quarter of 2007.

The latest statistics and numbers from Quotable Value relating to residential property price and valuation appreciation across the nation are very encouraging, as is the latest economic data from the Reserve Bank of New Zealand - and so if you’re a homeowner in New Zealand already, you’re planning a property investment in New Zealand or you’re emigrating to the nation and will be in search of a home, here’s all the latest data you will find useful.

Quotable Value released their latest statistics bringing data up to date to the end of May 2007.  Their comprehensive findings show a nationwide average increase in the underlying value of real estate in New Zealand of 11.1% in the year to the end of May…an increase on the figures predicted at the end of April which stood around 10%.

All the main urban areas are still seeing intense interest translate into strengthening property prices, and now even the lower end residential properties are seeing appreciation as first time buyers and the less affluent are being forced to hunt hard for a property they can afford…this means at this point in time there is activity in all tiers of the residential property market in New Zealand.

Blue Hancock, a spokesperson from Quotable Value commenting on the findings stated that high levels of employment were keeping the market liquid and maintaining affluence and affordability in the housing market.  He also noted however that levels of inward migration to the nation were down slightly and that this had naturally had an effect on both demand and on the supply of ‘new’ money to the market.

Going hand in hand with Mr. Hancock’s comments and the overall buoyant feeling that still pervades in the New Zealand property market was the economic data just released by the Reserve Bank of New Zealand.  The Bank published its findings relating to the New Zealand economy which apparently accelerated sharply in the first few months of the year.

So strong is international confidence in the economy now as a result that there are an increasing number of offshore investment companies and funds from the likes of Australia, UK and mainland Europe entering the property market in New Zealand and fighting amongst themselves for the best commercial property opportunities.

So it appears that the New Zealand property market remains strong and positive even if some real estate industry spokespersons believe that this current positivity in the market cannot last for much longer.