Property Prices in New Zealand are Falling

Median prices for property in New Zealand have fallen and those such as expats who are in a strong buying position are bagging bargains

It’s all too easy to become obsessed with the financial market at home, the property market in the UK and the state of the jobs market across the British Isles – but some of us need to be casting our eyes a little further afield and keeping abreast of pertinent activity in the location we’re contemplating emigrating to.

New Zealand is one of the most popular choices with Britons considering starting a brand new life abroad in a location that’s considered to be safe, have a high standard of living and offer a degree of familiarity that makes it an easier transition.

And the potentially good news for those who will soon be moving to live there is that property prices in New Zealand are falling at a sharp rate, levels of interest in the Spring market are well below annual norms, and there are buyers so keep to sell that bargains can be bagged.

According to the latest findings from QV, New Zealand’s largest property information company, the annual average price decline has hit 6.8% across the nation, with some locations touching almost a decline of 10%.  Naturally this is excellent news for anyone in the market for a property in New Zealand such as an expat who’s moving down under with a sizeable deposit or even cash to purchase a new home.

According to a report in the New Zealand Herald, cheeky buyers who are in a strong position to buy are getting away with ridiculous offers particularly on previously tenanted investment properties where the landlord owners are struggling to maintain their portfolio.  All areas of the country have been affected by negative pricing adjustments, and also by a downturn in interest, although some market sectors are faring better than others.

Interestingly it’s the bottom end of the market where buyers are most conspicuous by their absence – probably because properties within this bracket are traditionally purchased by first time buyers and perhaps sub prime purchasers.  Just like in the UK, it’s these sorts of buyers who are being most negatively affected by the credit crunch, and they are really struggling to get any financing. 

If you’re thinking about emigrating to New Zealand and you have a buyer for your British property, you’re going to be in one of the strongest positions possible to bag a bargain.  As a cash buyer or someone with a large deposit upon whom lenders will smile favourably, you’ll also appeal to vendors keen to offload their property.  This will mean you can make a massively reduced offer and chances are, get away with it.

Look for vendors who need to sell quickly if you want to get the best prices, look also at auction properties – of which there are plenty coming to the market across New Zealand at the moment.  But, don’t panic and think that you have to move fast, many analysts are predicting that this situation in New Zealand will last for some time, that prices will further drop and financed buyers will have the upper hand in the marketplace for some considerable time to come.

If you’re waiting for a buyer in Britain, use the time wisely to get to know New Zealand better.  You can rent a property and spend time travelling round, getting to know different communities and areas and finding exactly the right spot in which you and your family can make a home.  There will still be bargains to be bagged once your British property has sold, and what’s more, you’ll be living in New Zealand already, therefore you’ll know the market better and be better able to spot a bargain too.