Reserve Bank's proposal to remove LVR restrictions could also boost the sector
Century 21 New Zealand expects plenty of activity in the real estate sector following the government’s announcement that the country would shift into COVID-19 alert level 3.
The government did not consider real estate as one of the essential services to Kiwis during the alert level 4 lockdown. However, it would allow private viewings, by appointment, of rental properties and homes for sale under alert level 3.
Derryn Mayne, the owner of Century 21 NZ, said they anticipate plenty of activity in the market once the country shifts into a lighter alert level lockdown.
“Regardless of COVID-19, many families still want a bigger home, empty nesters still want to downsize, and first-home buyers still want to make the most of record-low interest rates,” Mayne said.
Read more: Realtor owner backs removal of LVR restrictions
Mayne said the removal of loan-to-value ratio (LVR) restrictions would also boost the real estate sector as it allows younger Kiwis to buy their first homes, and it brings more property investors into the market.
“We don’t know when, but without doubt, real estate will rise again. It always does. What’s more, our franchises are well placed to weather the inevitable headwinds, helped by many Century 21 offices having very strong property management portfolios,” she said.
She added that serious buyers are still active amid the pandemic, with real estate websites reporting more traffic and longer average user times since the lockdown.
“We are chomping at the bit, but we’re also very conscious it’s still not business as usual. With some clear and practical guidelines in place for real estate to operate under Level 3, we’re keen to make it work for buyers and sellers alike,” Mayne concluded.
