11 December 2008
New Zealand has long been a popular relocation spot with UK nationals looking for a new life abroad. However, New Zealand has not traditionally been on the property investor’s radar, but with its property market showing promising monthly growth, it may be time to take a look at homes down under.
New Zealand’s average house price rose from NZ$330,000 to NZ$335,000 from September to October this year and according to the Real Estate Institute of New Zealand (REINZ), properties in 5 out of the country’s 12 regions increased in price during October 2008. Prices in the region of Taranaki, in the west of North Island, saw an increase of 8.67%, rising from NZ$262,250 to NZ$285,000. Prices in Northland (the northern part of North Island) also saw a rise in excess of 8%.
According to REINZ, the uncertainty that surrounded the last general elections has now been dispelled and the recent falls in both interest rates and fuel prices mean that confidence has returned to property investors. The latest rises in house prices would seem to confirm this tendency.
New Zealand is world-renowned for its spectacular scenery and high quality of life, and is a popular holiday destination. Recent accolades confirming New Zealand’s tourist potential include Golf Destination of the Year 2009 (for the region of Asia and Australasia), and the winner of Virgin Holidays’ Responsible Tourism Award as the world’s greenest destination.
In addition, New Zealand regularly hosts world-class events, particularly when it comes to sailing competitions. The forthcoming Louis Vuitton Pacific Series, a 2-week sailing competition to be held in Auckland during January 2009, is just one example.
“At a time when property markets in many countries are suffering a series of set-backs, the news from down under is surprisingly good,” comments James GonzÃ¡lez, Market Analyst at Obelisk. James believes that New Zealand may well be the next place to investigate for property investment.