Many Kiwis are seeking more affordable homes or a change of scenery due to the economic and social impacts of the COVID-19 crisis. As a result, real estate agency Total Realty expects housing markets in smaller towns and cities to grow in the coming months.
The pandemic significantly impacted the real estate sector during the first COVID-19 lockdown in New Zealand, resulting in many negative forecasts from economists. However, the market has continued to recover, with the number of new listings and interested buyers remaining stable.
“Although it is likely that the spike in property movement in June was simply a delayed outcome of sales that would have naturally occurred in April/May had COVID-19 not hit, the continued new property listings and interested buyers remains promising,” Total Realty said.
Read more: Property prices above expectations – realtor owner
Total Realty noted that many Kiwis, including ex-pats, are becoming more interested in properties in smaller and more affordable areas of the country, such as Dunedin.
“While places like Auckland might soon begin seeing a drop in growth as residents start moving out of the city, these losses can be recouped in other areas,” it said.
“Realtors such as Total Realty who sell real estate in Dunedin are set to welcome increased interest in properties and can also expect new listings to be added over the next few months to meet the demand.”
More Kiwis are also considering buying rather than renting, thanks to lower interest rates. Areas that have predominantly short-term rental markets remain desirable rental locations. However, they are shifting towards longer-term rentals, with the number of furnished listings having steadily increased since before the lockdown.