Extra regulations and government pressure have not slowed down residential property investors, says one expert.
The latest CoreLogic Buyer Classification figures reveal that investors remained active in November, with multiple property owners with a mortgage accounting for 25% of residential property purchases across New Zealand. In Dunedin, mortgaged investors’ activity has hit 26% of the market – the highest level in three years.
“Lower entry prices and higher gross rental yields will be one factor attracting investors to Dunedin, although they will no doubt also be weighing up the costs of getting any lower-quality properties up to Healthy Homes standards,” CoreLogic research analyst Kelvin Davidson explained.
Davidson also pointed to increased first home buyer activity. Nationally, first home buyers accounted for 23% of the market, 30% in Wellington and 25% in Auckland.
“This goes to show just how strong the resolve of FHBs to get on the ladder really is, helped along for example by access to KiwiSaver for a deposit, as well as a willingness to change their expectations on quality/location,” he added.