Low rates and a lack of housing supply have heated up the housing market – but a real estate expert said that urbanites snapping up bachs and fleeing to the regions have also added “fuel to the fire.”
Derryn Mayne, owner of real estate firm Century 21 New Zealand, said that the growing acceptance of remote working and the arrival of holiday home management and marketing companies “have made living in the regions and buying a bach much more achievable.”
Read more: What's happening with the lifestyle property market?
“Companies like Bookabach, Bachcare, and Airbnb have meant more families can now service a second mortgage, thanks to the good income stream many holiday houses can now attract,” said Mayne. “Further, with the borders largely shut, strong domestic tourism has only boosted the appeal of owning a bach you can casually rent out.”
Mayne added that travel restrictions from the COVID-19 pandemic have also led to more Kiwis “exploring their own backyard, but it has also fast-tracked companies’ and organisations’ digital enablement and acceptance.
“In short, employers and employees have got used to working from home and that has changed people’s mindsets as to where they can live,” she said.
REINZ’s monthly statistics on median house price sales have been particularly strong for regional New Zealand, driven partly by city-dwellers, seeking an easier lifestyle, adding to local demand.
“Greater flexibility around work has been a key factor in the regions’ strong real estate resurgence,” said Mayne. “At the same time, causal rental income has delivered the beach house dream to many more. All said and done, these changes have provided greater opportunities for many Kiwis and that’s positive.”