Auckland's property market is now red hot and it had recently pushed New Zealand to the top of the Asia-Pacific house price index. In a recent report from nzherald.co.nz, the index prepared by Global property consultancy firm Knight Frank showed the recent performance of the Kiwi housing market.
Amongst the observations made by the firm are the percentage changes of New Zealand home prices from 2014 to 2015. This indicates that the local housing market has nosed ahead of former frontrunners Malaysia and neighboring Australia.
For outlook, New Zealand was amongst those countries where current fiscal and monetary policies would contribute to an effect in the housing market. The other countries identified include Australia, China, India, Indonesia, Japan, South Korea and Thailand.
Even local players have been overwhelmed with the performance of the NZ market. Barfoot & Thompson, the largest real estate firm based in Auckland, reported that June 2015 was the busiest June on record for the past 11 years. Despite the volume, the experts say home prices may not have even reached their peak yet, as reported on stuff.co.nz.
According to Barfoot & Thompson Managing Director, "While the new government and Reserve Bank measures which are due to come into effect in October are likely to have some impact on prices, as will the approach of winter, there is also a growing feeling among buyers and sellers that homes are close to being fully priced."
About 30 percent of homes sold by the real estate firm were priced between AUS1$ million while only 14 percent were priced below AUS$500,000. The numbers were directly attributed to the loan-to-value ratio mortgage deposit restrictions in place.
In a report from radionz.co.nz, most of the properties sold were located in Tauranga, Hamilton and the Western Bay of Plenty. As a result, prices in the Tauranga district have risen by 7.3 percent for 2014 and another 4.3 percent just for the first quarter of 2015. In Hamilton, prices have increased by 4.4 percent compared to 2014 figures of the same period.
