December Market Report

New Zealand at present has two different economies and two different real estate markets.

  • 1 December, 2014
  • Market

The Auckland and Christchurch Canterbury regions are very positive, experiencing unprecedented growth.  With low unemployment and immigration at record levels it means most people are confident about their future.  A busy real estate market with capital gains is being well received.

The balance of the country often isn’t seeing any capital gain.  Some regions actually in decline over the past years in sales volumes and prices achieved, coupled with less job opportunities.  This scenario leads to a buyers market in most regions.

Many Aucklanders and Canterbury families are taking advantage of the high prices to move to more affordable areas where a family home can be purchased often for less than it would cost to build.

This trend I believe is set to continue as the cost of living in the big cities is getting out of control and unachievable for many.

It’s easier for retirees to relocate to outer lying areas, but employment is a major factor for Mums and Dads.

In February/March 2015 I believe there will be an influx of properties for sale in Auckland, as many find the cost of living more than their income.  Trading down will be a big trend as families struggle to make ends meet.  The quarter acre full section is now a dream for many especially in the inner suburbs of Auckland City where two bedroom units are now $600,000 to $900,000.

LJ Hooker NZ

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