It’s tough going in the housing market across the Tasman. While Auckland’s housing market peaked in mid-2016 and then went flat ...
Sydney and Melbourne kept trucking for another year and 18 months respectively, gaining significant value during that time.
Now Sydney prices are down 11.1% from that peak, with Melbourne’s prices down 7.2% and commentators warning of a further 11% drop in Melbourne values in 2019.
New Zealand hasn’t been hit anywhere near as hard – having missed out on the additional gains of 2017, we’ve also missed falling off the huge cliff behind them. It seems our regulation has been part of the reason, particularly lending restrictions. It’s tough pricing money out of lenders at the moment, particularly for investors.
So have we reached six o’clock on the property clock? Here at Impression, we think it might be – this feels as though it could well be the bottom of the market. As usual, though, the property cycle is far from a smooth ride. We could cruise along at this flat point for many months, or even years. However, we have good reason to believe that Auckland prices will pick up again in 2020. Wages will be steadily increasing, demand for housing remains strong and the city is still the country’s economic powerhouse – as well as being a highly desirable place to live.