More sales? Don't blame the interest rates: Harcourts

Increased real estate sales are being driven by more than just low interest rates, says Harcourts chief executive Hayden Duncan.

While lower rates were offering borrowers financial respite, he said they were “not the sole stimulant driving real estate volumes”.

He said sales were also being boosted by the global economic turmoil, prompting investors to return to the market.

“Investors particularly are looking at what other options they have and property is looking like a very, very attractive investment at the moment.”

Duncan said other factors included projected growth in the economy, a buoyant rural sector and improved business confidence.

He also said the sales increases needed to be viewed in the context of the previously poor market conditions.

“They were unavoidable given the 15-year lows that the real estate market is currently coming out of.”

Barfoot & Thompson managing director Peter Thompson also said investors were returning to the market, though he said they differed from what he described as the more speculative buyers of the past.

“Those that are looking to buy a property, do up and on sell relatively quickly, we’re not seeing too much of them at the moment,” he said.

“But those that are buying a property for rental investments, yes, there is starting to be more enquiry on those lines.”

First National general manager Colleen Milne supported the view that investors were back in the market, and also first-time buyers helped by an easing of bank deposit requirements.

“In Manukau both offices reported that there’s lots of investors in the market,” she said.

“They’re getting multiple offers on properties and prices are getting up to that pre-2007 level.”