"Is it time to carefully revisit the government's 2018 foreign buyer ban?" realtor asks
The rising number of listings is giving Kiwis plenty of choice and greater opportunities to secure their own home, with the latest statistics serving as “a timely reminder for vendors to engage the best agent and agency,” said Tim Kearins, owner of Century 21 New Zealand.
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Kearins’ comments follow the release of REINZ’s Monthly Property Report for October, which saw median house prices across New Zealand drop 7.5% annually. At $825,000, the national median house price was down from $892,000 in October 2021, but up 1.9% compared to September.
“While October sees an increase in enquiry and open home attendance in some regions, rising interest rates have caused hesitancy amongst buyers across Aotearoa New Zealand,” REINZ said. “The national median price showed improvement in September. Still, prices continue to ease, sales activity remains down, and properties are taking longer to sell than in October 2021.”
With the doors slowly opening to more migration and more approved residents able to buy, Kearins said people like the fact that every listing with Century 21 goes global.
The question now though, Kearins said, was whether it’s time to carefully revisit the government’s 2018 foreign buyer ban – could it be strategically lifted for some existing housing stock or for parts of the country really needing a capital injection?
“Across New Zealand, the number of residential property sales in October decreased annually by 34.7%,” he said. “At the same time, the number of new listings nationally was down 4% annually. However, overall stock levels were up 74.7% compared to October 2021, with all regions having more property for sale.
“Let’s not forget that Kiwis will always want to move house, and we’re still seeing many good properties commanding good money. In my observation, the top end is probably holding its own better. Also to note is that many provincial areas are holding up better than our cities.”
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Buyers are expected to hold back this spring due to rising interest rates, cost-of-living pressures, and ongoing struggles to secure a mortgage.
“All eyes will be on Nov. 23 as to what the Reserve Bank does with the official cash rate,” Kearins said. “One thing’s for sure, for the foreseeable future, borrowing looks set to only get more expensive.”
