New Zealand’s property market has remained quiet although first-home buyers remain very busy, particularly on the outskirts of the main centres.
That is the finding of the recent CoreLogic Buyer Classification data, which suggests more than half of all buyers in many outer city Wellington suburbs are first-home buyers.
“As anticipated, at this time of year, there is a lack of real impetus in the market,” QV general manager David Nagel said. “Demand remains steady and listings relatively low, resulting in stable market conditions but subdued value growth.
“We anticipate this will continue over the coming months, with supply remaining fairly constrained and demand either staying flat or dropping slightly in many areas,” he noted.
Nagel claims location is becoming increasingly relevant as affordability continues to be a major constraint. First-home buyers also continue to benefit from the low interest rate environment as well as less buyer competition, he said.
The report revealed Hutt Valley, Dunedin South and Taieri areas continue to see plenty of activity, particularly from first-home buyers. It also suggests new townhouses sell well, particularly in Wellington, noting they provide a more affordable solution than stand-alone properties.
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"With the Healthy Homes Bill having taken effect this week, we’ll be closely monitoring the impact this has on the investment market and on rents,” Nagel added. “At this stage, we have observed no major impact on the investment market although we may well see some upward pressure on rents, as landlords face up to the increased costs of keeping their properties insulated to the required standards.”