Property Investment in an All-time high post COVID19
The year 2020 was anything but normal for everyone and we stopped knowing how the world should work as we know it. The pandemic caused by the Covid19 surge had affected all industries no matter where in the world it may be, but just when we thought it was going to put a debilitating blow to the Property Market, statistics once again proved us wrong. The recent data released by the Real Estate Institute of New Zealand and online real estate services shows more property searches were made in the year 2020 than in the past years since 2016 and still on an upward trend as we are in the middle of 2021. The majority of the numbers of Inquiries were made by Kiwis that came home to Aotearoa last year- because let’s be honest there’s no better place to be stuck at this time of pandemic than here. As Level 4 restrictions were implied and people were prompted to stay at home and also as work from home options are now being offered as an option, many kiwis found themselves reevaluating their property preference and did not waste any time to get on the property market after said restrictions were lifted. Interestingly though, a percentage of the searches were also made by international buyers that had their eye on migrating here after New Zealand made numerous headlines with its successful management of COVID19 boosting up the interests for foreign investors.
House prices inflation is by far not a new thing in the property market and has already been part of the cycle of property investment, but a steadfast rise in prices whilst going through a pandemic is definitely an astonishment, probably even one of the firsts in history which only proves that properties are indeed invaluable assets. Now despite this growing interest and need for properties we face a vital concern as high demand does not always guarantee that there’s enough supply. Real-time data reported from real estate.co.NZ showed only 9,145 properties were listed for sale nationwide in April of this year compared to 6,968 of March.
Moving on to last month’s figures, it showed that despite the shortage of listings in the market, data shows a staggering number of properties were sold just this April with 7,218 to be exactly reaching an all-time high in the last 5 years. Auckland alone had reached 4,627 with 48,1% of properties sold via bidding, the highest it has been since 2018. These numbers are considerably astounding even after the New Zealand Government’s announcement on the changes that were made in terms of Housing favoring first-home buyers over investors as Finance Minister Grant Robertson said such amendments were designed to tilt the balance of the market away from investors. Rising prices of houses of course not only affects property owners but also those who are currently renting as we have seen a rise as well in rental prices amounting up to an average of $600/week for a three-bedroom house in Auckland encouraging Kiwis to consider in buying property over renting which is in the case in the long term logical choice given the fickle fluctuation of prices we have seen in the last few years
The Property market sure is an unpredictable business and a lot of factors are at play but whatever your current circumstance is Telos is here to guide you throughout the way. Feel free to get in touch with the #Telostribe.