PHOTO:KAVINDA HERATH/STUFF Queenstown’s economy is expected to be heavily affected by Covid-19.
How much your house price might fall this year will depend a lot on where you live, economists say.
ANZ has released its latest Property Focus research, which included an assessment of which regions are likely to be most affected by the Covid-19 outbreak.
The bank’s economists predict a national house price fall of between 10 per cent and 15 per cent this year.
But they warned the impact would not be evenly felt. Areas with more exposure to tourism and migration, and with recent high rates of building, were more exposed to house price falls than others, they said.
That left Queenstown-Lakes District, Mackenzie, Kaikoura, Westland, Taupo and Thames-Coromandel most exposed.
Economist Elizabeth Kendall said Auckland could also experience bigger price falls on average than much of the country.
“We will see recovery on the other side but it may be slow and house prices may settle at lower levels relative to income because the high prices no longer make sense… Queenstown may be affected for some time because it will take a long time for tourism to come back online.”
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