Australia’s Property Market Could Light the Way For NZ
Wellington, 3 June 2020 - As the world begins to recover from COVID-19, data reveals Australia’s experience could light the way for New Zealand’s property market.
Mike DelPrete, an International Real Estate expert and Director of Tall Poppy Real Estate, analyses property trends across the globe. He is closely tracking how international markets are responding to Covid-19. “The Australian lockdown was less restrictive than others in Spain and the UK, and we’ve seen a less severe drop in listings in Australia. “Early evidence suggests New Zealand is experiencing the same response as it moves through Level 2. In late May, Australia’s listings were already increasing,” says Mike DelPrete.
Regional property markets around New Zealand are reporting building interest in property listings and sales. Tristy and Shaun Vadnjal, owners of Tall Poppy Taupō, say people are looking to buy and sell at the same levels pre-COVID. “Moving through levels 4 and 3 buyers were initially more cautious, with only serious inquiries coming through. However, since Level 2, we’ve had homes go under contract at similar prices to pre-lockdown. “People who had contracts go unconditional during lockdown have become buyers, and with fewer options on the market, it’s becoming a race as they don’t want to rent if they can avoid it,“ says Tristy Vadnjal.
Tall Poppy reports that new listings during Level 2 have rebounded strongly across all regions. Although sales volume dropped to 15% during Level 4, transactions are now increasing every day, heading towards pre-COVID-19 levels. Michael Seymour, an Owner of Tall Poppy, says that while the whole sector has taken a hit, talk of lower house prices has not been seen yet. “Demand is still outstripping supply, but how long that dynamic lasts is the big question,” says Michael Seymour. Promisingly for the industry, along with listing growth, Tall Poppy Real Estate is also reporting a high-level of inquiries from skilled people out of work looking to Real Estate as a career.