Bene NZ is complicated in some ways. Agriculturally there's been a huge swing from cropping to dairying and vines. Dairy farms are a small fortune to buy in NZ... think millions. We've seen the Sauvignon Blanc glut, a bit like vineyards here, too much production.
There's a few distinct markets in NZ... the big cities Auckland, Wellington, Christchurch, middle sized provincals and small towns.
Here's some data fresh from Harcourts NZ. Normally you'll read in NZ of days to sell (from date of listing). And while the figures below are divided into areas, there's more regions than this. For example Christchurch values which might be in the 300,000s are vastly different to Southland where the median price might be more like $150k
Whether or not there's downside is hard to say. What you can't argue with is NZ is a beautiful place with much more diversity in its housing stock and architecture than here. But whether there is the same growth driving NZ hard to say. Certainly there's no mineral boom like in WA which balances things in Australia.
I'm still tempted with NZ as keep seeing properties I like the look of. For affordable Art Deco look no further than NZ.
However what keeps me back in the AUD/NZD exchange rate.. great when buying and you'd have to think @ 1.27/1.30 this is about as low as it can go... and the potential for capital growth. But if you were say to have a neutrally geared or cashflow positive property in NZ, the tenants might over time pay it off for you.
"The New Zealand real estate market continues to remain subdued, as Harcourts’ latest figures show.
While there were indications a Spring rebound would occur, so far that has not eventuated.
Interestingly values have continued to strengthen on the whole however, with the Christchurch market being the exception – though it has outperformed early post-earthquake predictions.
The record-low volume of October settled sales reported by the Real Estate Institute of New Zealand recently is reflected in the October written sales data from Harcourts, New Zealand’s largest real estate group.
It should be noted however that a contributing factor to the Harcourts’ figures was the fact that a large number of transactions were rushed through prior to 1 October to save clients the increase on fees resulting from GST rising to 15% on that date.
While September and October have been disappointing, with sales volumes well down on the same period last year, a lift in activity is expected to be evident in the November and December statistics.
Hayden Duncan, CEO, Harcourts New Zealand
Northern Oct 2010 Oct 2009 % Change
New Exclusive Listings 455 449 1%
New Auction / Tender Listings 204 212 -4%
Property on Hand 3281 3414 -4%
Written Sales 321 427 -25%
Average Price $457,849 $505,749 -9%
Harcourt's Northern Region out-performed the drop in the overall market due to the continued strengthening in our market share. The average price drop reflects lower-value homes are starting to sell again.
Central Oct 2010 Oct 2009 % Change
New Exclusive Listings 363 526 -31%
New Auction/Tender Listings 72 86 -16%
Property on Hand 3149 3333 -6%
Written Sales 272 351 -23%
Average Price $300,674 $348,078 -14%
The Central Region is currently a buyers’ market, offering good opportunities for astute purchasers. Stock on hand is tightening and could have a positive impact on prices.
Wellington Oct 2010 Oct 2009 % Change
New Exclusive Listings 342 387 -12%
New Auction/Tender Listings 83 101 -18%
Property on Hand 2680 2325 15%
Written Sales 183 341 -46%
Average Price $326,289 $349,120 -7%
In the Lower North Island higher stock on hand, lower transactions and an average price drop indicates astute purchasers are buying now. Good new listings are coming to the market though and well-priced properties are selling.
Christchurch Oct 2010 Oct 2009 % Change
New Exclusive Listings 574 702 -18%
New Auction/Tender Listings 81 180 -55%
Property on Hand 3188 3614 -12%
Written Sales 352 597 -41%
Average Price $356,671 $380,065 -6%
A faster recovery is occurring in this region than initially expected and we predict that will continue with an increase in activity and prices anticipated to strengthen.
South Island Provincial Oct 2010 Oct 2009 % Change
New Exclusive Listings 316 286 10%
New Auction/Tender Listings 63 60 -5%
Property on Hand 2671 2492 7%
Written Sales 174 243 -28%
Average Price $336,577 $293,308 15%
This has been the best performing of Harcourts’ regions recently, with average prices strengthening and volumes showing some levels of consistency.