To say the New Zealand property market’s recent downturn has resulted in “cheap” prices everywhere would be an overstatement. Yet, people interested in buying property in New Zealand will find that bargains are starting to appear in the midst of some rather healthy prices.
With its legendary landscapes loved by moviemakers and holidaymakers alike and its booming British community, New Zealand has what it takes to appeal to property investors. Over the last few years however, the appeal has been so high that New Zealand’s prices have outpaced the budgets of many would be buyers. The tide is starting to turn. In this article we’ll explore how investors can cash in on some potential savings. It is important to remember that whilst growth is slowing and prices are dropping, the overall picture for New Zealand is anything but bleak. Prices on the whole do remain high and growth is slow, but is hasn’t stopped and there is such a thing as property in New Zealand bargains.
Savvy investors will find that if they look hard enough they can locate some incredible steals on the New Zealand market. Some sellers are getting antsy and they are taking less than appraised value to make a sale. The New Zealand Herald reported that a recent Sunday edition of the paper listed more than 130 different properties that were priced below their values. In some cases, the price cuts were quite deep. In fact, sellers are starting to tout the price slashing in their ads, hoping to attract attention.
Whilst some sellers are getting antsy with the slowing growth and dropping interest on the part of buyers, it is important for investors to realise that New Zealand’s property market has not come to a screeching halt. Double digit growth in values continues in some areas. In October for example, valuer QV put pricing growth at 12.7%. This was a drop from September’s 13.2%. But it seems as price growth is falling so too is high demand. QV’s estimation is that buyers are really looking hard and exploring their options before placing money on a property purchase.
Average sales prices in New Zealand do remain quite high. The typical home will set one back about NZD 400,000. The potential returns however, make the market very attractive for buy-to-let investors, second-home buyers and expats. The rental yields remain promising in the 5 to 7% range, depending on the area in question.
With some 200,000 Brits calling New Zealand home on a full-time basis and more than 300,000 visiting the country each year, the appeal for property in New Zealand among UK buyers is quite strong and is likely to remain so. Overall, 2007 tourism revenue is expected to have an estimated USD 21 billion impact on the economy in New Zealand.
New Zealand’s property market’s recent cooling is presenting some very big opportunities for investors who have been frightened off by high prices. Bargain hunters can find some incredible buys if they look in the right places. With some homeowners getting impatient for sales, the news is getting better for buyers on a budget.
Further Property in New Zealand Articles
If you found this article useful please share it with others.
Page 1 of 1