Expert warns on border changes’ impact on property market
New Zealand was already gaining popularity among billionaire property investors even before the COVID-19 pandemic hit the country. As the industry expects an influx of international property when borders reopen, OneRoof’s latest property report pinpoints areas with the most expensive homes.
The OneRoof Property Report for May 2021 found 20 suburbs with a $2 million or more median property value. Meanwhile, the number of over $1 million suburbs has jumped by 141% from 117 to 282 over 12 months. It also revealed that Herne Bay and Whitford are now $3 million suburbs.
The report also found that the top end of the property market remained red-hot across New Zealand, especially in Auckland. In the first quarter of 2021, the number of $1 million-plus homes sold reached 7,069 – up by 108% on the same period last year. Meanwhile, $3 million-plus properties saw a more significant uplift of 123.9% (from 138 to 309).
At the luxury end of the property market, OneRoof’s report found that the number of $5 million-plus sales increased by 104.3% from 23 to 47 – with the majority in Auckland, two additional in Otago, and one additional in Canterbury.
Auckland saw a dramatic increase in $1 million-plus (up 98.5%). Meanwhile, Southland saw a 400% increase (albeit on low numbers from one to five properties for over $1 million), Wellington a 310.9% increase (from 92 to 378), and Northland a 261.5% increase (from 26 to 94).
“Property was once almost an exclusively Auckland story. Now it’s a conversation topic regardless of where you are in New Zealand. After the weather, I suggest it’s one of the next things Kiwis are most likely to chat about,” said NZME’s OneRoof head Paul Maher.
OneRoof’s latest data also found that demand for properties with backyards, swimming pools, decks, and media rooms has skyrocketed – as has demand for four-bedroom homes where the fourth bedroom could be used as an office, with sales increasing by 15.1% in the 12 months ended March 2021 compared to the less than 5% increases in the previous two years.
Maher warned of the impact of immigration changes on the country’s property market as the government expects new immigration settings to welcome many wealthy international investors to the country.
“The impact on New Zealand’s property market of post-COVID changes in immigration should interest all of us. The government suggests new immigration settings could allow more than 200 wealthy international investors into New Zealand – it’s going to be very interesting to see the impact of what they do with their money and where in New Zealand they spend it,” Maher said.
