New Zealand Property Sentiment Improves
Strong residential demand coupled with historically low levels of New Zealand housing supply, has helped boost New Zealand property values in recent months, making the New Zealand real estate sector an increasingly attractive investment proposition.
Long stuck in Australia’s shadow, New Zealand is now the ninth most searched for destination to buy a home abroad based on country page views, and property views, on HomesOverseas.co.uk - ahead of property in Australia (currently 12th most popular destination).
New Zealand has leapt from 13th – last month - to the ninth most searched for destination to buy a home abroad, on HomesOverseas.co.uk.
Spring New Zealand property sales bounce
The latest monthly survey of market activity, the New Zealand Property Report, reveals that listings are up just 7% to 13,550 homes in New Zealand compared to a 21% increase rise at the same time last year and 16% in 2007.
“But the seasonal uplift in listings has not happened as it did in years gone by.”
New Zealand property shortage
Low inventory levels and a rise in residential demand, has ensured that the New Zealand housing market is now firmly a vendors market, which has encouraged some sellers to increase asking prices.
Increased New Zealand property market sentiment has encouraged more housebuilders to boost residential output over the past six months.
Fresh research released by Statistics NZ revealed that there was a 23% increase in the number of residential property approvals issued since May, which is in stark contrast to the fall in commercial building consents.
Turner told the press: “Residential construction is poised to lift off its current low levels. However, the lift in housing demand has been relatively muted and the recovery in residential construction is likely to be subdued.
“The decline in construction activity has created a significant amount of slack in the economy and has been responsible for much of the unwinding in inflation pressures over the past year.”
New Zealand property prospects for 2010
The recovery in New Zealand residential construction activity reflects the national broader recovery in the New Zealand property market, and this should continue going into next year. Expect New Zealand property values to increase further, albeit at slow, healthy, pace of growth.
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ABOUT THE AUTHOR
Marc Da-Silva for HomesOverseas.co.uk. property in New Zealand for sale, New Zealand property news, expert advice on buying property in New Zealand and New Zealand property investment.