14 July 2010
The latest Quotable Value survey on the New Zealand housing market shows more people think that it is a good time to buy than when the last quarter research was completed in March 2010. The confidence in the market has also improved since March with 56% of respondents believing prices will stay the same or rise by up to 5% over the next 12 months.
Property values are the main factor for people buying or selling. The implications of the recent tax changes around property investment have not had the impact some were expecting and this has helped to restore confidence in the market.
A specific set of questions to property investors in the survey yielded some interesting results. Although the depreciation changes were set to have the most impact on this group, the overall result has seen investors on the whole look to keep and expand existing portfolios. It is also clear that investors plan to increase rents, with most indicating there will be a 1% to 5% increase over the next 12 months.
These positive results are good news for investors and the property market as a whole.