The talk of the town in recent weeks has undeniably been the changes to the Government’s Housing Policy, resulting in an extension of the Bright-line test to 10 years, but more contentiously, the announcement about investors no longer being able to deduct interest deductions for residential rental property acquired on or after 27 March 2021.
As anticipated, significant changes like this in the past have caused a temporary pause in the property market as investors take a step back in caution, waiting to see what impact this will have on the market, if any.
We did see investors pause and sit back as the news settled in, causing a softening in buyer enquiry and demand following the recent market high’s. However, we are pleased to say the market has bounced back, with investors still actively buying as they struggle to find an alternative option that ticks the boxes like residential property does.
As things settle down, our sales numbers have increased over recent weeks, narrowly meeting the demand requirements from our buyers which include investors, first home buyers and empty nesters. This trend is favouring the pro-active seller through buyer competition as we continue to sell more property than we are listing at present.
On the auction front, we continue to see our room full of active bidding on most properties and a noticeable lift in competition in recent weeks with us achieving as high as 100% under the hammer which is further encouraging.
The rental market remains buoyant with more local tenants coming into the city seeking apartments, resulting in a declining number of vacant apartments available. This is an encouraging trend as investors start to prepare for the imminent return of overseas students at some point in time.
Whether buying, selling or seeking someone to look after your rental property on your behalf, our team of specialists are here to help so please call anytime.
Ray White sets April record with $1.681 billion in sales
Ray White New Zealand has achieved the best April in its 28-year history as Australasia’s leading property group sold $1.681 billion worth of property – more than double the previous best that came in April of 2016. The group sold 1,626 properties across the country with an average sale price of $996,000 and internal data showed that around 25 per cent of those sales belonged to investors.
“We of course can’t compare year-on-year with April in 2020 because of COVID-19 lockdowns – but when we look back at our previous best April in 2016 – we completed $801 million in sales, so effectively we’re up over 100 per cent on our previous best,” said Ray White New Zealand COO Daniel Coulson
“We do have to take a moment to acknowledge our members who have been exceptional in delivering the best outcomes for our buyers and sellers – these results are testament to them and their hard work – these results reflect them being true leaders in their field.
“There is some early evidence that first home buyers are being less overt, but it is a market where low-interest rates are the major driver of affordability and purchasing power.” says Daniel Coulson
“The April results saw continued momentum in the property market across most buyer classifications. There was a rise in the second, third and fourth homebuyer sectors, while the first home buyers remained at 24 per cent of all sales. Investors are considering their position and are still showing interest in property.”
Carey Smith, Ray White New Zealand Chief Executive Portability and purchasing power.
