Wellington real estate agency Tommy’s says the market remains buoyant and unlikely to see a housing crash any time soon
The Capital is not only showing resilience compared to the volatility of Auckland but key indicators point towards immunity to a housing crash in the foreseeable future.
“Wellington hasn’t seen the highs and lows that Auckland’s experienced,” said Tommy’s managing director David Platt. “This should provide Wellington people with comfort that they will be insulated to a degree from any future readjustment to the house prices.”
Strong economic growth of 2.2% in the year to March, falling unemployment (to 4.7%) as the labour market grows, and immigration well above the 10-year average; are all conditions which drive the housing market.
Even an increase in interest rates shouldn’t hit the market, Mr Platt said, as any increase is set to be modest and remain low by historic standards.
“On the demand side, immigration remains at record levels driven by New Zealanders living overseas who now want to return home given increasing uncertainty offshore in the wake of Brexit and the rise of populism,” he said.
While demand is growing, developers are constrained by capacity and financing challenges so Platt doesn’t see a surge in construction in the city.
“These factors will continue to underpin the Wellington housing market creating a degree of immunity not enjoyed nationwide to any major readjustment in house prices,” David Platt said.
“Wellington hasn’t seen the highs and lows that Auckland’s experienced,” said Tommy’s managing director David Platt. “This should provide Wellington people with comfort that they will be insulated to a degree from any future readjustment to the house prices.”
Strong economic growth of 2.2% in the year to March, falling unemployment (to 4.7%) as the labour market grows, and immigration well above the 10-year average; are all conditions which drive the housing market.
Even an increase in interest rates shouldn’t hit the market, Mr Platt said, as any increase is set to be modest and remain low by historic standards.
“On the demand side, immigration remains at record levels driven by New Zealanders living overseas who now want to return home given increasing uncertainty offshore in the wake of Brexit and the rise of populism,” he said.
While demand is growing, developers are constrained by capacity and financing challenges so Platt doesn’t see a surge in construction in the city.
“These factors will continue to underpin the Wellington housing market creating a degree of immunity not enjoyed nationwide to any major readjustment in house prices,” David Platt said.
