Property investors with cash are the only group growing

The latest CoreLogic analysis of the New Zealand housing market shows that tighter mortgage restrictions are barring many buyer types

Property investors with cash are the only group growing
The latest CoreLogic analysis of the New Zealand housing market shows that tighter mortgage restrictions are barring many buyer types.

The share of investors buying properties in New Zealand has increased but not those requiring a mortgage, with the cash-buyer share pushing ‘multiple property owners up to a 38% share of all buyers in the second month of quarter two.

Meanwhile, the share of movers slipped to 27% while first home buyers was steady at 21%.

Nationally, CoreLogic says that market activity is moderating and will translate into far fewer buyers in the coming months. 

In Auckland investors make up a 43% share while both first home buyers and movers have eased to 22% each. However, again the growth of Auckland investors is driven by cash buyers.

"We have seen a dramatic drop in first-home buyer activity," said Nick Goodall from CoreLogic told the NZ Herald, speaking of the Auckland market.

With listings at normal seasonal levels but fewer buyers, the Auckland market is unlikely to see a reversal of the decline in home prices. Hamilton prices are flat while Wellington and Tauranga is seeing increases at a slower pace than a year ago.

Hamilton has seen a slowdown in market activity with first home buyers making up 23% of buyers, movers at 24% and investors at 33%. Auckland-based investors buying in Hamilton has slowed though, the report says.

First home buyers make up 30% of the Wellington buyers, while movers dropped to 22%; investors have increased sharply though to be the largest share of buyers in this market too (33%).