Property

Real estate market showing positive signs: Survey

Further signs are emerging that the residential property market is starting to pick up and an expected surge in immigration numbers plus a shortage of new construction will push up house prices.

Wednesday, March 11th 2009



The latest glimmer of hope for the market comes from BNZ’s first monthly survey readers this year. The survey, which had around 16,000 responses, showed an overall deterioration in sentiment from the previous survey in December.

A net 23% of respondents expect the economy to get worse over the coming year from 6% three months ago.

BNZ economist Tony Alexander says businesses generally are facing cash flow constraints and are trimming expenses in expectation of tough conditions continuing.
While most sectors remained weak there was one very clear change in this month’s survey compared to last year’s ones.

He says that is in residential real estate.

“Lower interest rates along with increasing perceptions of a shortage have contributed to a significant improvement in sentiment. At the same time as vendors have become more realistic in the prices they will accept more buyers have been entering the market.

“They appear to be a mixture of both owner-occupiers getting on with life and investors attracted by yield compared with the alternatives.”

Alexander says this does not encourage him to write in terms of rising prices; “not with the unemployment rate set to soar.”

But it appears increasingly that the market is “clearing” more easily and it is becoming appropriate to speak in terms of turnover having passed its weakest point.

What will be interesting, he says, is the impact later this year and through 2010 of an expected surge in net immigration and worsening housing shortage due to the construction collapse.

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.