Ups And Downs Ahead – And Some Bright Spots, Too | Impression Real Estate
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Ups And Downs Ahead – And Some Bright Spots, Too

Posted by Impression on 31, Mar 2022

The cost of everything seems to be skyrocketing at the moment, from fuel to home loans to groceries.

Rents, too, have risen, with TradeMe reporting an all-time high in January; apartment rents now average $500 nationwide.

Not everything is going up: the growth of house prices has stalled, which is helpful for first home buyers and those looking to trade up, so if you’re in one of those categories (or you know someone who is), this could be an opportune moment.

“The outlook for the housing market is still a bit sluggish and for buyers out there it might be the right time to get in," Kelvin Davidson of CoreLogic told Newshub. “…What I think we are seeing is buyers having a little bit more pricing power, so the balance of power is shifting towards them.”

If you’re already a property owner, prices have grown so dramatically over the past two years (up 27.4% in 2021) that a flattening, or even a drop, in values shouldn’t be too much of a concern.

Despite the downbeat news, there are some definite bright spots for our local economy. Unemployment remains at an all-time low and it’s a great time to get a better job with a higher salary. New Zealand’s GDP grew 3% for the last quarter of 2021, we’ve signed a free trade agreement with the UK which could be worth up to $1bn, and farmgate milk prices are high and holding.

But perhaps the most positive news is the reopening of our borders. Vaccinated tourists can come to New Zealand without going into MIQ: from 13 April for Australian tourists and from 2 May for travellers from other visa-waiver countries like the US, UK, Germany, Singapore and more. This should be the turning point that our tourism, hospitality and tertiary education sectors have been waiting for.

We expect to see travellers gradually returning to New Zealand from that time, which will give our economy a major boost. It should also breathe new life into Auckland’s CBD, particularly as workers return to their offices. It’s a signal of brighter times ahead, and we can’t wait.

© 2022 Impression Real Estate Limited - Licensed Real Estate Agent (REAA 2008)