Although the number of property sales have decreased, the median price for real estate in New Zealand continues to rise. The Covid-19 pandemic has done little to slow down the New Zealand property market. New Zealand has always had low levels of supply, resulting in fewer properties available to buy. This drives up demand and as a results, prices continue to soar.
The median house price has increased from $570,000 in 2020 to $700,000 in 2021. Jen Baird, chief executive at The Real Estate Institute of New Zealand () said in a statement: “House prices have once again risen across the country, with every region seeing a year-on-year increase from August 2020. This latest lockdown has not dampened demand for, or confidence in, the housing market as we saw in early 2020…”
New Zealand is an attractive place for investors to look when buying property thanks to its stable economy, political system and quality of life. Due to the lack of supply and competition, New Zealanders are concerned and feel locked out of the market. Many people feel like despite saving for a deposit that they can’t catch up.
This continued rise can price many young buyers out of the market completely if New Zealand doesn’t start improving inventory and supply. It will take a much longer time to save up for a house deposit if this continues.
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