house price falls

PHOTO: ALDEN WILLIAMS/STUFF Price drops in areas like Queenstown which rely heavily on tourism are likely to be more pronounced.

Ten per cent house price falls? Twenty per cent drops in turnover? Property investor and trader Nick Gentle isn’t worried.

Despite the Covid-19 outbreak and economic impact, he’s bought one property in the past two months and is “looking all over” for more.

“I’m back in the market, I’m always looking for a good project. Some of the fundamentals have obviously changed and some have not… people always need a place to live.

“I had a property that went down 40 per cent in the global financial crisis but my rent only dropped $5. It tricked back up and it was fine.”

Economists have predicted that house prices will fall by anything up to 10 to 15 per cent over the next year, while turnover could fall by about a fifth this year compared to 2019.

Smaller centres with a greater proportion of baches and Airbnb properties could be hit harder with price drops than suburbs in the main cities.


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