Experts are expecting the COVID-19 (coronavirus) pandemic to massively impact the property market in New Zealand. However, Century 21 New Zealand has insisted that the market remains solid – with sales volumes and prices increasing, rents reaching all-time highs, and interest rates plummeting.
Derryn Mayne, owner of Century 21 New Zealand, said the overall future of the property market in the country remains stable even in the event of an economic recession.
“With so much volatility on the financial markets, property remains a haven to put your money. Whether you’re a first-home buyer sick of paying rent or a retiree who’s barely getting a return from their savings in the bank, buying residential or commercial property has never looked more attractive as a long-term prospect,” Mayne explained. “Kiwis are conservative by nature and are looking for a safe bet to invest their life’s work.”
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Mayne said property syndications are quite popular with Kiwis as they require a lower investment but could offer a reliable and steady return without the stress that comes with being a landlord.
“However, nothing beats 100% ownership and control. That has never gone out of fashion, and in fact, looks more appealing by the day. Kiwis know that even if they have to be a little more patient, property will deliver strong capital gain,” she said.
She predicted that the property market would continue to do well in the summer, with business and consumer confidence quickly returning.
“Regionally, some great major infrastructure projects are coming on stream – the latest being the 15km Huntly bypass, then there will be the Hamilton one, and the nearly billion-dollar motorway extension from Puhoi to Warkworth in the next couple of years. These kinds of projects will help to open up Waikato, North Auckland, and Northland for business and investment, and aren’t bad for local real estate either,” she explained.
“Don’t let anyone talk down the New Zealand property market. It has endured depression, world wars, recessions, and various economic and health crises. It will outperform anything thrown at it this year, too.”