PHOTO: Property Crash in New Zealand
Property Noise Group – OPINION PIECE 1 January, 2019
Via our extensive research and through our aggregation of Property News both in New Zealand & Australia – we believe we have developed a solid understanding of the property markets
- Firstly – what amazes us is how many people think boom time will continue because we have an under supply of housing in NZ
- Australia is going through a major property market correction – as a result of banks tightening their lending, this will come to New Zealand
- There is a Global Financial Crisis on the horizon and this will effect us massively
- New Zealand is an overpriced real estate market that has no future in climbing in price year after year
- Interest Rates – they will rise and when it does those first home buyers in Auckland who took out $800,000 plus mortgages – will suffer
- Mortgage Debt – this is a crisis in NZ & Australia.
- Look for Mortgagee Sales to increase significantly in 2019 – even without mortgage interest rates increasing much
- There will be less KiwiSaver First Home Buyers in the market in 2019 – due to their KiwiSaver funds taking a hammering – delaying their entry into the property market
- REINZ….. in their review of 2018 state:
Bindi Norwell, Chief Executive at REINZ says: “The 2018 property market has been dominated by a number of key themes including:
- The ‘foreign buyer ban’ which came into effect on 22 October and whether that would impact the house prices across the country.
- the stabilisation of pricing in the Auckland market which has hovered around the $850,000 for 21 months now
- The strength of the regions in terms of price growth
- The increased spotlight on the property management industry with the ban on letting fees and a number of industry players, including REINZ, calling for regulation
- The continued difficulty first time buyers face to get a foot on the property ladder particularly with the length of time it takes to save for a deposit and rising house prices.
In our opinion these points above will continue to provide impact in 2019 – however with the exception that we see the regions falling off on price growth considerably
- Our previous thoughts on the property markets can be viewed below;