Survey: Fewer People Expect Home Prices to Increase in New Zealand

New Zealand home builders should work with planning consultants for their next development project, as a survey indicated that Kiwis became more confident on prospective home purchases.

The ASB Housing Confidence Survey showed that buying a house no longer seems a bad idea for more people, particularly when it involves the Auckland market. At the same time, fewer Kiwis expect home prices to increase in the future.

Auckland Housing

ASB Chief Economist Nick Tuffley said that falling home prices in Auckland served as a major reason for the change in outlook among Kiwis. This led public sentiment on home purchases to reach its highest level since January 2013, as the Reserve Bank of New Zealand’s cooling measures seemed to be working, according to Tuffley.

The average sale price for a listed home in the city amounted to more than $919,000 in February, down 1.1% compared to November 2017. By contrast, housing transactions rose 19.6% year-over-year in the previous month that indicated a stable demand for properties. A possible explanation for this involves the country’s ban on foreign investments in the residential property market.

Other Markets

While prices in Auckland seemed to have dropped, the ASB survey also showed a different picture for North Island and South Island housing markets. Those who expect home prices to increase in the South rose to a net 30%. Kiwis anticipate Canterbury homes in particular to register higher prices.

On the other hand, expectations on North Island’s home price growth fell to a net 20% from 23%. ASB’s latest survey covered three-month period ending December 2017.

Home builders need to take advantage of the positive sentiment and higher demand for properties among Kiwis. This can be done by looking for property consultants and planning agents to facilitate your next project.