Residential
Explore
During the buildup to the New Zealand general election in September this year, real estate industry bodies noted a slight slowdown in the property market.
In a September 12 statement, Real Estate Institute of New Zealand (REINZ) chief executive Helen O'Sullivan commented on market activity leading up to the election.
"The real estate market appears to be 'idling' as buyers and perhaps even more so, sellers, await the outcome of the September 20 election," she explained.
August sales volumes had been down seven per cent since July this year, with year-on-year results showing a decrease of 16.3 per cent.
In addition to the uncertainty of the general election affecting the property market, REINZ also identified a "lack of listings" as another culprit for the slowdown.
"All eyes are on listing numbers which would normally be increasing at this time of year, but which may be impacted by the timing of the general election," explained Ms O'Sullivan.
All of this coupled with restrictions on loan to value ratios means there are many factors that have resulted in less than satisfactory property results in the lead up to the election.
However, with the election done and dusted and vote results finalised, things are picking back up in the real estate market in New Zealand.
What's hot in New Zealand?
Auckland has been a prominent city for value growth over recent months. Over the year to September 2014, residential real estate values increased by 10.3 per cent. However, QV valuer Bruce Wiggins says that value growth is beginning to slow.
"There could be a number of factors that have contributed to this over the winter including a low number of listings, the traditional winter effect, and the lead up to the election however there is now increased activity being reported in the market," he said.
Another city of note was Christchurch. Since suffering from the devastating earthquakes, residential real estate has been a hot commodity throughout the city.
Value growth of 5.1 per cent was identified by QV over the year to August 2014. This activity was largely concentrated in Christchurch - Central and North at 0.8 per cent, while the Waimakariri region wasn't far behind at 0.7 per cent.
"There is an upbeat attitude in the city and over the last four weeks the market has kicked into gear and lots of houses are selling for good prices," said QV valued Daryl Taggart.
