Source: Landlords.co.nz

11 December 2008

New Zealand has long been a popular relocation spot with UK nationals looking for a new life abroad. However, New Zealand has not traditionally been on the property investor’s radar, but with its property market showing promising monthly growth, it may be time to take a look at homes down under.

New Zealand’s average house price rose from NZ$330,000 to NZ$335,000 from September to October this year and according to the Real Estate Institute of New Zealand (REINZ), properties in 5 out of the country’s 12 regions increased in price during October 2008. Prices in the region of Taranaki, in the west of North Island, saw an increase of 8.67%, rising from NZ$262,250 to NZ$285,000. Prices in Northland (the northern part of North Island) also saw a rise in excess of 8%.

According to REINZ, the uncertainty that surrounded the last general elections has now been dispelled and the recent falls in both interest rates and fuel prices mean that confidence has returned to property investors. The latest rises in house prices would seem to confirm this tendency.

New Zealand is world-renowned for its spectacular scenery and high quality of life, and is a popular holiday destination. Recent accolades confirming New Zealand’s tourist potential include Golf Destination of the Year 2009 (for the region of Asia and Australasia), and the winner of Virgin Holidays’ Responsible Tourism Award as the world’s greenest destination.

In addition, New Zealand regularly hosts world-class events, particularly when it comes to sailing competitions. The forthcoming Louis Vuitton Pacific Series, a 2-week sailing competition to be held in Auckland during January 2009, is just one example.

“At a time when property markets in many countries are suffering a series of set-backs, the news from down under is surprisingly good,” comments James González, Market Analyst at Obelisk. James believes that New Zealand may well be the next place to investigate for property investment.

10 November, 2008

Real estate experts are saying that there is no better time to buy property than right now. Prices have dropped, mortgage rates are down and there are some bargains out there.

More and more buyers are searching the web to buy and one of New Zealand’s leading real estate websites has one of the most comprehensive portfolios of listings of properties of any website in the country.

Every month there are over 270,000 hits and over 111,000 listings, but just what are the most popular areas that buyers have been looking for property in across the country?

“One would assume the most active suburbs would be the elitist suburbs, the most expensive suburbs,” Alistair Helm said. “But what we found was it was guineen interest and that speaks to people using the website who are actively looking for property.”

The fifth most popular suburb is Westmere in Auckland, which is a sought-after inner city suburb where older people are moving out and the younger generation moving in.

The proximity to the CBD is the most appealing element of it. As Auckland grows it makes it an attractive area.

Average sale price in the last six months according to quotable value is $803,676.

The fourth most popular suburb for buyers looking for property is Maori Hill in Dunedin, which is an affluent suburb that features some of the city’s largest and most established homes, along with some of the city’s most breathtaking views.

The average price for a home in Maori Hill $417,375.

Cashmere Hills which overlooks Christchurch, is another established suburb with older-style large homes and home to many professionals.

The average sale price for a house in the Cashmere Hills is $572,983.

The second most popular suburb for buyers is Dunedin’s St Clair, which is a lifestyle suburb by the sea with views over the city.

A house in St Clair would set a buyer back around $344,738.

The number one suburb in New Zealand for home buyers is Dallington in Christchurch. The suburb is close to the city centre and sits near the Avon River. The housing are mostly Bugalows and are affordable for many families with an average price of $317,038.

7 February 2008

Property price growth continues in most of New Zealand’s regions where up to an amazing 29% per annum has been recorded. At a similar pace, rental yields have undergone continuous rises creating profitable prospects for landlords and property investors alike.

A report carried out by the Massey University Real Estate Analysis Unit registered rises in median residential rent levels across the country by NZ$10 a week over the last quarter of 2007 to NZ$290. The report, based on data from the private rental sector and supplied by the Dept. of Building and Housing Bond Centre, explains that median rental levels stayed well ahead of inflation, increasing by 3.5% from August 2007.

According to Professor of Property Studies, Bob Hargreaves “Increases in rents over the last quarter are likely to be partly the result of demand pressure from net migration and potential first home buyers who are remaining in the rental market for longer than expected.”

Informetrics’ managing director, Gareth Kiernan, comments on how “rental inflation edged higher over the final quarter of last year as tenant demand for rental accommodation appears to be solid across all dwelling sizes.” And figures correlate his statement as the company recorded gross rental yields creeping up to 4.39%.

In January this year, the Real Estate Institute of New Zealand published latest home valuation figures, which recorded an increase in property sales of 6% compared to 2006. Some areas such as Ellerslie-Panmure saw 29% value increase and one of the country’s star regions, Gisborne, continued its good run with values rising 13% last year, closing a 4 year increase of 111%.

As with all global economies, New Zealand’s Reserve Bank Governor Allan Bollard has stressed his concern: “There has been ongoing turbulence in international financial markets. Despite this, the New Zealand economy is projected to keep growing reasonably well.”

New Zealand property is expected to continue attracting lucrative returns, whether through capital appreciation or rental yields. The country boasts political stability and a sound infrastructure already in place. Investment property purchasers are safe in the knowledge that the country does not rely solely on tourism, with the domestic rental market currently generating higher yields and returns alone.

Source: NZNewsUK

22 November 2007

New Zealanders not only spend most of their money on property, but looking after it has now outstripped manufacturing as the country’s biggest employer.

Statistics New Zealand’s Linked Employer-Employee Data (LEED) series showed 238,200 people were employed in property and business services during the September 2006 year, up 3 per cent from 2005.

The manufacturing industry fell to second with a 1.9 per cent fall in the number of jobs to 237,000. The textiles, clothing, footwear and leather manufacturing sub-industry was the key driver of the decline in manufacturing jobs.

Total filled jobs across all industries increased 1.7 per cent to 1,751,450 in the September 2006 year from a year earlier. Over five years, the number of jobs had increased 17.4 per cent.

The mining, construction, electricity, gas and water supply industry grouping had the highest filled job growth rate of 7.3 per cent in the year to September 2006 and 51.8 percent in the five years to September 2006.

The construction industry was the key contributor to the increase in filled jobs within this industry grouping.

Agriculture, forestry and fishing together with manufacturing were the only two industries to report a decline in filled jobs (2.0 per cent and 1.9 per cent, respectively) in the year.

The average mean quarterly earnings for all industries was $10,530 during the September 2006 year — up 4.5 per cent from the September 2005 year and 21.7 per cent increase from the September 2001 year.

Health and community services had the highest average mean earnings growth of 6.9 percent and 29.3 percent during the two reference periods.

The finance and insurance industry continued to be the highest paid industry with average mean quarterly earnings of $16,450 while the lowest paid were in agriculture, forestry and fishing at $8030.

Source: NZ Herald

November 11, 2007

One of the last classic Kiwi baches on Waiheke Island - owned by the same family for 45 years - has been put on the market for the first time.

The fibrolite bach, built in the early 60s on The Strand at Onetangi, is one of the last survivors from an era before multi-million dollar beach homes became a common sight on the island.

Now, the cute, white two-bedroom bach on an 835sq m section facing out to sea is up for sale at $2.2 million.

The bach was built by the father of the present owner, who asked not to be identified.

“It’s been loved all right,” he said. “I can remember holding up the fibrolite sheets for my dad when he was building it. I have grown up there.”

The owner said his father bought two sections on Waiheke for about £1200. At the time, he joked, you could win a section on Waiheke as second prize in a pub raffle.

“It’s changed a bit. It used to be a step up from a camping ground.

“There are still no traffic lights and no McDonald’s. But now there are very, very rich people in baches.

“There used to be a row of families we used to knock around with.

“We had happy family days there, fishing, canoeing and sailing… It’s one of the richest memories as a kid you can ever get.”

He said he would be sad to part with the bach which had been a holiday home for three generations of his family. But he had reluctantly decided to sell to “help my kids out”.

He did not expect the bach to be preserved by the new owner. “But we’re buying another place. We’ll never leave the island. It’s in my blood.”

Daniel Burrill from Matthew Smith Real Estate said the bach was one of the last of its kind on Waiheke.

“It’s one of the best properties on the island. So many have been developed now. The whole island has changed a lot in the past five years,” Burrill said. “The old Waiheke is still there, but it’s a real mix.”