If word about the New Zealand property market’s recent cooling has you feeling sheepish about carrying through with your plans to invest in the nation’s real estate market or expatriate to New Zealand, a few rather interesting factors are combining to indicate this country’s potential is still bright.
In this article we’ll take a closer look at why New Zealand’s property market appeals despite the slowdown and we’ll examine a few factors that make the real estate sector attractive to expats and investors. There are still plenty of reasons to consider this paradise for living in, retiring to and investing in.
Whilst it is true that New Zealand’s property prices are falling, this isn’t necessarily a bad thing for long-term investors. According to the New Zealand Herald the month of September alone saw a drop in property prices of about NZD 14,000 in Auckland for example. Sales are also quite sluggish.
The northern region saw a drop of about 25% in sales figures – however, despite the drops, buyers are still finding prices are a bit on the high side. Average prices are coming in around NZD 530,000 – but a lot of property is obtainable at drastically lower prices if you buy at auctions and shop around carefully. If the dip continues, buyers here will find even better deals as sellers get impatient or desperate for a turnaround.
Although the New Zealand property market does seem to be chilling a bit, buyers will find a lot going on to boost potential. Tourism remains strong for example, as do the numbers of expats arriving. And corporate interest in infrastructure improvements seems to be holding its own as well…
Regarding tourism – the World Travel & Tourism Council is predicting rather steady upward growth in the already strong tourism industry in New Zealand. The 2007 figures are expected to include a total economic activity of about USD 21 billion, and a per annum growth rate of about 4% is predicted for the period of 2008-2017.
Regarding corporate interest in infrastructure improvements – on the technological front news from the Telecom Corporation is encouraging for potential investors in New Zealand property. The company has announced plans to build a next generation network to deliver fast broadband Internet services to the entire nation. The NZD 1.4 billion project is targeting every town and city within the country with ADSL2+ technology the Herald Sun reports.
The sustained tourism industry and the announcement of Telecom’s infrastructure plans for New Zealand are both good news for potential investors. The tourism figures show that potential still remains high – especially for those looking at buy-to-let opportunities, and Telecom’s announcement has several potentially good impacts on New Zealand property. Firstly, the expansion of better broadband throughout the whole of the country will enable investors, expats and holidaymakers alike to get away from it all whilst still remaining connected. Secondly, it does show that corporate investment interest in New Zealand remains healthy which bodes well for the nation’s overall economy.
Although New Zealand is facing a present slump in pricing and sales, the country still remains quite appealing to investors that desire rental opportunities or long-term prospects.