It's timely boost for the industry while many Kiwi citizens are standing back for now, realtor says
More migrants who have recently been granted residency are now able and keen to buy their first home in New Zealand, said Tim Kearins, owner of Century 21 New Zealand.
Read more: Flow of foreign migrants rises for the first time since early 2020
Kearins’ statement comes as Immigration New Zealand is busy processing and approving applications under the government’s fast-track 2021 resident visa scheme. The scheme, which closed at the end of July, has exceeded expectations, with 85,000 people out of 215,000 now approved and ready to settle down in New Zealand. Those granted a resident visa can purchase a house if certain criteria have been met.
“Without doubt this is a timely boost for the real estate industry,” Kearins said. “While many Kiwi citizens are standing back for now, our newest residents see a good opportunity to get into the New Zealand housing market. Having potentially tens of thousands of new buyers out there looking is certainly a positive for many vendors keen to sell well.”
Most migrants who applied for the 2021 fast-track visas were reportedly from the Philippines, China, South Africa, and India, with most working in the construction, education, health, and primary industries sectors.
“While some are relatively new to the country, many have been here for several years but can only buy now because the scheme has effectively fast-tracked their residency,” Kearins said. “Their arrival into the market this winter is being particularly noticed by Century 21’s Auckland agents, which is great given Auckland is at the sharp end of the slowdown.”
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Many of the new migrant buyers were opting for new builds as they would only need a 10% deposit, compared to the 20% required for most buying an existing house, Kearins said. He also noted that new townhouses seem to be a popular choice and price point.
“People see these acres of townhouse developments under construction and wonder who’s going to buy them and move in,” Kearins said. “Well, the good news is New Zealand’s newest residents are snapping up many, with first-home buyers now also taking their opportunities to get onto the property ladder.”
In its latest Monthly Property Report for July, REINZ found that first-home buyers are re-emerging with many agents also reporting renewed interest from investors.
