The Real Estate Institute of New Zealand (REINZ) recorded the biggest increase in New Zealand housing sales between October and November in the last six years, as more foreigners sought to acquire residential properties.
Offshore buyers maximised the remaining time to buy homes before the government imposes a ban in early 2018. The restriction aims to solve a so-called “housing crisis” in the country.
According to REINZ, housing transactions rose by 17.8 per cent in November from October. Aside from overseas investor, the seasonal uptick in demand during spring drove the increase in sales. Those who still ponder on selling their properties should seek advice from agencies that specialise in property management in North Shore, Auckland, or other cities.
Another recent trend that took place involves Bitcoin as an option to buy a piece of real estate. In Kaiuma Bay, Marlborough Sounds, a certain property went on sale at $200,000. Interested buyers may use the digital currency, which the seller allowed to satisfy their curiosity on such payment terms.
While Bitcoin has found its way to the real estate market, the traditional currency will remain the most common mode of payment. Home values, however, prevent most people from being able to pay the price tag on properties. Nationwide prices rose at an annual rate of 4 per cent in November, except for Auckland where prices fell 1.2 per cent year over year.
In the last 10 years, the price growth has reached more than 50 per cent in the country, although home loan restrictions have partly tempered the increase.
Kiwis may expect several changes to the country’s real estate market in 2018, as the government’s ban on foreign buyers would no longer have free reign on housing transactions. On the other hand, it remains to be seen whether prices will become more affordable.