Region with the highest number of sales appears to be one of the most affected areas
It is not surprising that the COVID-19 crisis impacted the property market in New Zealand, especially during the alert level 4 lockdown in March. As a result, the Real Estate Institute of New Zealand (REINZ)’s latest report revealed that the number of property sales dropped across the country.
The REINZ’s March data showed that between 1,750 and 1,950 properties were sold every week for the first three weeks of the month. However, around 1,100 fewer sales occurred in the last week of March, around 62% decrease than the previous number of sales.
On the bright side, market activity did not stop completely – with more than 400 properties still sold through online and telephone auctions or virtual tenders.
“Looking specifically at the six days of alert level 4 lockdown in March, more than 480 properties were sold across the country, with sales occurring in each region via online platforms. The majority of these sales were likely already being negotiated or had potential offers waiting before the country moved into level 3 and subsequently level 4 lockdown,” Bindi Norwell, chief executive of REINZ, said.
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Auckland, Canterbury, and Wellington had the most significant percentage of sales in March, with 22.1%, 18.4%, and 10.9%, respectively.
Norwell said Auckland took the top spot, but it was also one of the most affected regions during the lockdown – with sales down 80%.
“However, Gisborne’s sales were down 83% with two properties sold, down from an average of 12 from the three six-day period prior. These regions were closely followed by Waikato which saw sales fall by -77% (31 properties sold, down from an average of 135 from the three six-day periods prior),” she continued.
“REINZ has continued to work with the government to find ways to keep the industry moving through the various alert levels to ensure buyers and sellers can make property-related transactions and try and move forward with their lives,” Norwell said. “The key will be the level of activity that occurs in April when people have been unable to visit a property in person – even for private inspections.”
