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Despite the predicted post COVID economic uncertainty in the building industry, a recent survey shows New Zealanders are still focused on property with 36% considering building a new home in the next 12 months.
The chief reason cited for choosing a new home build was because people could not find what they wanted in the existing real estate market.
“Over 24% of people cannot find what they want from existing homes, closely aligned with the fact 22% of New Zealanders believe building a home provides more value for money,” reveled Steven Zhu, Executive Director of Stonewood Homes, the company that commissioned the survey.
Mr Zhu said results showed people were realistic about what they will need to spend to get their ‘perfect’ home
“52% of people are prepared to spend between $300,000- $500,000 which will enable most people to build a 3-4 bedroom, 2 bathroom, open plan living and kitchen home design. They view a new build as the best way to get what they want for the price they want to pay, and across most of the country this budget will afford you something nice.”
Despite concerns of a dramatic drop in house prices, realestate.co.nz data shows that the national average asking price for houses was up by 10.3% year on year in May to $724,058 and seven regions recorded all-time average asking price highs*. Property prices remained stable in June, with a national average asking price of $727,749 – a marginal increase of 0.5% compared to May 2020 and 10.4% higher than in June 2019**.
Mr Zhu said this provided a further incentive for people to consider new builds, as the property bargains that some may have expected post COVID-19 had so far not come to fruition.
“Our data indicates that people across a variety of lifestyle stages are looking for the value in a new home build, with respondents including renters wanting to buy their first home and 21% of existing home owners looking to upsize or downsize respectively.”
“Overall, the survey reveals New Zealanders remain optimistic about the new home market and those results fit with the level of inquiries we’re seeing, which are up 300% from the same time last year,” Mr Zhu said.
Renewed interest in new construction is also reflected in recent data from Stats NZ, with the number of new homes consented in May 2020 increasing 64% from April, the largest monthly change since February 1972. In May 2020, the number of new homes consented was 3,554, the highest number since May 2019 when 3,724 were consented***.
Mr Zhu said the Stonewood Homes research also highlighted what ‘homebodies’ Kiwis were and that COVID had only cemented our desire to create the perfect home.
“Interestingly, lockdown may only have reinforced people’s nesting attitudes towards their homes, with 43% describing their lifestyle as one where they loved peace and quiet and staying at home.
“Only 13% of people liked to entertain friends and family regularly, with another 13% happy to have people over to their homes sometimes. Obviously, our time at home has only increased the focus on what people want from their home and how important it is to them to actually achieve it.”
*NZ Property Report: May 2020, www.realestate.co.nz
**NZ Property Report: June 2020, www.realestate.co.nz
***Stats NZ, https://www.stats.govt.nz/news/new-home-consent-numbers-bounce-back-in-may
^ Survey conducted by Pure Profile 1000 sample nationally
