PHOTO: Bayleys
A summary of some of the recent developments shaping New Zealand’s housing market over the last month.
As the COVID-19 pandemic rages across the globe with worsening reports from the United States, India and South America, the number of expatriate Kiwis returning home has picked up again, following a lull in international arrivals during the higher levels of lockdown.
While the virus has made a reappearance at our borders, New Zealand (at the time of writing) has managed to contain community transmission and the upside of returning residents is a valuable resource for our economy amidst lost revenue and layoffs.
Where some pick muted migration to spell disaster for property prices, the inflow of Kiwis re-entering the country coupled with record retention of those that would otherwise have flown the coop have contributed to an assumed net inflow of around 34,000 people – with greater potential should employment prospects improve.
Returning home with equity in their pockets, some will look to purchase their own residential property, while the remainder not staying with family and friends may enter our rental market, spurring further demand for quality homes.
This is consistent with recently released data from TradeMe Property, which shows the number of property views up 69 percent in May 2020 when compared year-on-year, along with an increase in email inquiries and properties added to member’s watchlists.
Offering an interesting silver lining to what has been a difficult few months, positive anecdotes have seen an upswing in consumer sentiment which when paired with pent-up retail spend and record low interest rates contribute to an economic outlook that’s just a little brighter.
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