Property Market stories
Record rents are keeping first-home buyers in the market, with mortgage payments still cheaper than paying to rent for many Kiwis.
Its portfolio value rose to GBP £3.5 billion as occupancies stayed near full and new build-to-rent projects were launched despite lockdown pressures.
Record-low losses and near-universal gains in New Zealand’s housing market are being driven by tight supply, strong demand and cheap borrowing.
New Zealand’s median house price climbed by NZD $100,000 in October, with 10 regions hitting record highs amid tight supply and strong demand.
Rising mortgage costs and tighter lending rules are expected to cool the market, even after values posted their first monthly acceleration in six months.
Higher mortgage rates and tighter lending rules are already cooling New Zealand’s housing market, with investor demand slipping further.
Property values rose 1.4% nationally in September, but activity is easing as tighter lending and higher rates weigh on buyers.
Higher mortgage costs are unlikely to deter first-time buyers while rents keep climbing and remain above many monthly loan repayments.
Tenants could face higher rents and fewer homes as landlords lose interest deductibility from Friday, industry figures warn.
Property values have surged nationwide, leaving first-home buyers facing tougher affordability as almost every New Zealand suburb gained at least 10%.
Housing pressure is driving New Zealand's first large-scale build-to-rent scheme, with 295 apartments planned for Sylvia Park in Auckland.
A further NZD $150m in funding will help Auckland developers meet surging demand, with some homes already sold off-plan to waiting buyers.
Lockdown has not cooled demand, with New Zealand house prices hitting another record as spring listings are delayed and buyers stay active.
Property deals are being slowed by fresh restrictions, but Colliers expects demand to recover quickly once alert levels ease.
Affordability pressures are starting to bite, with Hamilton and Rotorua both posting quarterly falls after a rapid run-up in values.
Online property traffic is staying strong during New Zealand's Level 4 lockdown, as buyers browse listings and sellers turn to virtual appraisals.
Borrowers face higher repayments and tighter credit as rate rises, though lockdown likely postpones the Reserve Bank’s next move.
The franchise's headquarters will move to Manawatu after Tim Kearins bought Derryn Mayne's 25% stake in Century 21 New Zealand.
The sector now employs nearly 200,000 people and accounts for 15% of New Zealand’s GDP, according to new industry analysis.
New records in prices and sales show demand is still outpacing supply, despite efforts to cool New Zealand's property market.
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