More people are also attending open homes and auctions
The COVID-19 pandemic cannot stop investors from climbing the property market, with a joint survey by the Real Estate Institute of New Zealand (REINZ) and independent economist Tony Alexander revealing an increase in the number of investors entering the market this month.
According to the joint survey, more and more agents have reported seeing an increase in investors in the market compared to the first survey in May – with a net 38% of agents seeing an increase in investors this month compared to only 16% in May.
Alexander and the REINZ said the latest results put to rest the argument that the government's imposition of new rules is driving investors out of the market.
“There is a lack of evidence to support the contention that government efforts to improve the conditions of increasingly long-term tenants in New Zealand are having a net negative impact on investor interest in residential property. If some investors are selling, many more are buying,” they said, as reported by Landlords.
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The joint survey also revealed a high net of 58% of agents seeing more people attending open homes and a net 38% reporting more people at auctions.
Meanwhile, a net 88% of agents reported having seen an increase in prices compared to a net 17% in May, who reported a drop in prices. They also reported that the fear of missing out (FOMO) jumped from a net 77% in September to 81% this month.
“The market has turned to a strong degree in a very short period of time. Enjoy – or weep if you are still hoping for a market collapse to make your purchase,” Alexander said, as reported by Landlords.
