Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time.

Even so, Quotable Value (QV) general manager David Nagel has shuffled his tarot cards, read his tea leaves, and peered into his proverbial crystal ball. Though the economic outlook remains murky due to Covid-19, he’s predicting property prices will continue to rise in 2021, though at a considerably slower rate than we are currently seeing.

“A shortage of listings, record-low interest rates, and the looming re-introduction of loan-to-value (LVR) ratios means that the property market is in for a hectic summer yet. But when the LVRs do eventually kick back in just as the weather begins to cool in March, I expect the property market will start to cool as well.

“I’m predicting we’ll see something more akin to 2019 levels of growth again, when prices increased by an average of 4-5% nationally, as opposed to the rampant double-figure growth that we’ve witnessed during the back half of this year.”

That will come as scant consolation to first-home buyers in NZ’s expensive urban centres, Auckland and Wellington, where property prices have skyrocketed even higher in recent times, but it may provide some relief for buyers in the regions.

But Mr Nagel was quick to point out that NZ’s economic recovery still faces a bumpy road ahead, and though news of a potential Covid-19 vaccine being available as soon as the first half of next year was very promising, the country might still face further lockdowns, causing even more economic strife.

“As 2020 has taught us, anything can happen. But what we’ve also learnt this year is that NZ’s residential property market is more resilient than many of us expected. While interest rates remain so low, it’s difficult – but certainly not impossible – to fathom a scenario in which prices would fall dramatically.

“Until we address this country’s chronic shortage of housing, and I have been pleased to see that Auckland is on the right track now with record numbers of consents and work on new builds, we’re likely to have more buyers than we do houses, which is only going to keep prices up.”

© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats: Auckland’s Population Falls For The First Time
In the wake of the COVID-19 pandemic, New Zealand’s population growth slowed down with Auckland recording a population decline for the first time ever, Stats NZ said today. “New Zealand saw slowing population growth in all regions... More>>

BusinessNZ: Third Snapshot Report Reveals $9.5 Billion Business Investment In Climate Action

Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today... More>>

Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>

Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>

Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>