Property demand skyrockets post lockdown

by Roxanne Libatique27 Jul 2020

Now that New Zealand has ended the COVID-10 restrictions, demand for properties continues to soar as some Kiwis have decided to continue with their plans to climb the property ladder.

Trade Me Property's latest data revealed that listing views nationwide increased by 21% after the lockdown compared to the previous year. June had seen higher demand for property listings compared to June 2018 and 2019, with the most significant spikes seen in Manawatu/Whanganui (up 39%) and Hawke's Bay (up 45%).

“We're seeing much stronger demand for properties than we would've anticipated just after the lockdown and it seems, as life has started to get back to normal for many Kiwis, some have decided to continue with their plans to purchase a property,” said Trade Me spokesperson Aaron Clancy.

“Time will tell if this is sustainable or a short-lived sugar rush from pent up demand during lockdown. Comparatively, the number of properties available for sale in June was down by 8% when compared with the same month in 2019.”

Read more: House prices continue to rise post lockdown

Growing demand put pressure on property prices – resulting in an 8% increase in the national average asking price in June compared to the previous year, said Clancy.

“Every region in the country saw an annual increase in average asking price in June, with some regions reaching all-time highs,” Clancy continued.

“The provinces, in particular, had a strong June, and we saw record-breaking average asking prices in Manawatu/Whanganui, Gisborne, Nelson/Tasman, Southland, and Waikato.”

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Demand from younger buyers aged 18 to 29 also continued to surge after the trend emerged in April.

“We first saw demand spike in this group following the Reserve Bank's announcement it was scrapping the 20% home deposit requirement earlier this year, and now, we're seeing a growing number of younger Kiwis browse for their first home,” Clancy said.

“This, coupled with record-low interest rates, means we're seeing no signs of this trend slowing, with searches by 18 to 29-year-olds up 52% in June when compared to the same month last year.”

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