However, experts warn that the market is likely to be “tested” in September
Despite the impact of the COVID-19 pandemic on the property market, economists and other experts still believe that property as the best investment option in the current climate, according to financial comparison site Finder.
The latest Finder RBNZ Official Cash Rate Survey included the predictions of 13 economists and other experts on the central bank's future official cash rate (OCR) decisions and other issues related to the economy, including the best market to invest in.
According to the survey, despite the impacts of the lockdown, the country’s property market still took the top spot – with 50% of the respondents citing real estate as the best investment in the current climate. It was followed by shares and savings account, with both 10%.
However, 30% of the economists and experts were unable to pick the best investment – citing a combination of property, shares, and gold as the best option in the current environment.
Read more: Survey predicts drop in commercial property values
Kevin McHugh, Finder's publisher in New Zealand, warned investors to stay cautious as further “tests” or hurdles could still occur soon.
“New Zealand's property market experienced a strong bounce-back post lockdown. Buyer confidence remained high, and a lack of property listings pushed up prices despite speculation of a slump,” he said.
“But the market will be tested during the September triple-whammy of wage subsidies ending, mortgage holidays winding down, and a federal election. Property listings also tend to increase over spring, so we'll need to wait and see if demand will continue to meet this additional supply.”
Bindi Norwell, the chief executive officer of the Real Estate Institute of New Zealand, added: “There is a high degree of uncertainty over how various market factors will influence economic outcomes over the coming year, which means it is hard to predict when the cash rate will change.”
