Advisers buoyed by strong property market

The New Zealand property market has emerged strongly out of lockdown, according to mortgage advisers, who say they are busy as ever this winter.

Monday, July 06th 2020

As the nation came out of lockdown in May, home buyers and investors are as keen as ever to participate in sales and auctions, according to leading advisers.

Kris Pedersen, of Kris Pedersen Mortgages, says his business is "crazy busy" at the moment.

"Originally I thought it would just be pre-approvals for investors wanting to get ready for bargains, but we are seeing properties purchased and clients missing out in multi-offer situations. I think the interest rates may be a partial driver."

Joel Oliver of SuperCity Mortgages also reported strong activity in Auckland.

"I have financed everything from baches to investment properties. Common is an owner-occupied buying a new home and renting out the existing home, as the rates are so cheap and rent demand still high. The house purchase bracket of $1.5mil to $2.5mil is strong, usually someone’s second or third home."

iLender's Jeff Royle says he has been busy since the lockdown.

"Nothing has changed really, we still have a housing shortage, the demand is still high, many Kiwis overseas buying back home, and rates on the floor with no sign of rising anytime soon," he says.

"Credit criteria [is tightening at high LVR but there are a lot of people with good deposits around," Royle adds.

The feedback suggests the property market is enjoying a resurgence since the nation moved into alert level one.

Figures from The Real Estate Institute of New Zealand last week revealed early signs of confidence in the market in May.

According to REINZ, weekly sales started at 355 in the first seven days of the month, but ended May with 1,372 sales in a week. A typical May month would see around 1,700 properties sold each week.

June figures are expected to reflect further confidence as buyers look to capitalise on record-low mortgage rates. Fund manager Nikko AM suggests rates could drop below 2% due to Reserve Bank measures.



No comments yet

Heartland Bank - Online 1.99
The Co-operative Bank - First Home Special 2.09
HSBC Special 2.25
ICBC 2.25
HSBC Premier 2.25
Kainga Ora - First Home Buyer Special 2.25
AIA 2.29
TSB Special 2.29
The Co-operative Bank - Owner Occ 2.29
SBS Bank Special 2.29
Westpac Special 2.29
Heartland Bank - Online 2.35
ICBC 2.35
HSBC Premier 2.35
TSB Special 2.49
SBS Bank Special 2.49
The Co-operative Bank - Owner Occ 2.59
BNZ - Classic 2.59
ASB Bank 2.59
AIA 2.59
China Construction Bank Special 2.65
Kiwibank Special 2.65
HSBC Premier 2.89
TSB Special 2.99
AIA 2.99
Westpac Special 2.99
ICBC 2.99
ASB Bank 2.99
China Construction Bank Special 2.99
BNZ - Classic 2.99
SBS Bank Special 3.19
Kiwibank Special 3.19
The Co-operative Bank - Owner Occ 3.19
Heartland Bank - Online 2.50
Resimac 3.39
Kiwibank - Offset 3.40
Kiwibank Special 3.40
Kiwibank 3.40
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
The Co-operative Bank - Standard 4.40
The Co-operative Bank - Owner Occ 4.40
Kainga Ora 4.43

More Stories

North Shore’s a sure thing

Thursday, April 15th 2021

North Shore’s a sure thing

Auckland’s North Shore is booming, writes Joanna Mathers, and development potential opened up by the Unitary Plan is the focus for many.

Mortgaged investors still buying, but the game has changed

Wednesday, April 14th 2021

Mortgaged investors still buying, but the game has changed

March has continued a record peak for investors buying residential property.

Pandemic shifting the dial on residential design

Tuesday, April 13th 2021

Pandemic shifting the dial on residential design

From master planning entire communities to interior design, Covid-19 is reshaping the way developers, architects and designers are looking at houses and the environments around them.

Landlord polls: Rents will lift, sales will be low

Friday, April 09th 2021

Landlord polls: Rents will lift, sales will be low

Three recent landlord polls show the majority are going to lift rents in response to the Government’s decision to scrap mortgage interest deductibility against income.