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


January Real Estate Hot But Settings Soon Changing

“Real estate was on fire in January. In fact, it may well prove a cracker month for 2021 given February’s snap lockdown in Auckland and LVRs kicking back in from March,” says Derryn Mayne, Owner of Century 21 New Zealand.

REINZ has released its Monthly Property Report for January which it says shows the housing market ‘busier and more buoyant’ than what would normally be expected at that time of year.

Median house prices across New Zealand were up by 19.3% compared to January 2020, with Auckland up by 14.9% in 12 months. In total, four regions and saw record median prices during January and one saw a record equal. Nationally, the median days to sell a property, recorded at 35, was the lowest for a January month in 17 years, while sales volumes were the highest for a January month in five years.

“Summer has been incredibly strong, but some key factors are changing which will have an impact. Loan-to-value ratios (LVRs) will be reinstated on 1 March, meaning a 20% deposit requirement for owner-occupiers and 30% for property investors. What’s more, later in March the mortgage holiday scheme ends which will inevitably see a rise in exit and mortgagee sales,” she says.

The Century 21 leader says the latest Auckland lockdown and Level 2 for the rest of the country will impact February’s transaction numbers somewhat, but those contemplating selling their properties should not be put off. Buyer demand remains hot, driven by record low interest rates.

“As they say, never waste a lockdown! Those vendors thinking about selling should act now. For prospective vendors in Auckland, I would encourage them to spend these days preparing their home for sale and engaging an agent. Plenty can be arranged online and over the phone, and let’s not forget real estate websites get huge traffic during lockdowns,” she says.

“REINZ’s latest numbers show an incredibly strong and active market across the country. However, that was January, and we’re now heading towards a different phase. This will include investors needing a 40% deposit from 1 May, and possibly the Government requiring them to hold their properties for longer than five years to avoid paying tax on capital gains.

“Without doubt, there’ll soon be fewer eligible buyers and possibly more stock for sale. In the meantime, many first-home buyers and investors are desperate to secure a property before the rules start changing next month. In fact, right now could prove the best time to sell,” says Derryn Mayne.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>

Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>

Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>