New Zealand Property Prices Going Up

May 14th, 2013 Posted in Australia/Oceania | No Comments »

Upward Bound New Zealand Real EstateUpward Bound New Zealand Real Estate

New Zealand property values increased at its fastest pace since 2008. Property values rose 1.3 percent from a quarter earlier, 9 percent from a year earlier, 8 percent in the last year, and 3.3 percent from early 2008. National median home values reached in excess of $400,000 and for Auckland it was $600,000. Ninety percent of the price increase came from the Auckland and Canterbury regions – these regions alone represent 52 percent of national sales.

The steepest price increase has been noticed in the Auckland and Christchurch areas, which have seen 16 percent and 7 percent increases. Outside these areas, price increase has taken place as well, but there were ups and downs. For example, Hamilton showed 4.6 percent increase in one year, but Tauranga showed only 0.3 in one year. Wellington area showed 3 percent increase in one year.

Easy credit, the cheapest interest rates in 50 years, and low supply are some of the main factors contributing to home price increases. One third of mortgage owners are getting into the market with 20 percent or less deposit. This number is up from a quarter of mortgage owners from one year ago.

A report from the Bank of New Zealand points out that home prices are overvalued and out of line with incomes. However, there is no immediate price correction on the horizon. And price correction won’t happen until there is a significant increase in the supply market.

In New Zealand, the housing sector represents 73 percent of household assets and 52 percent of bank lending represents residential mortgages. Meanwhile, in Australia the housing sector represents 56 percent of household assets and 38.4 percent of bank lending represents residential mortgages. Unlike other similarly developed countries, there was no housing crash during the global financial crisis in New Zealand and median prices now sit at 12 percent above the level seen during the financial crisis in 2007.

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June Global Real Estate Markets Highlights

July 28th, 2012 Posted in Global Real Estate | No Comments »

June Global Real Estate Markets HighlightsGlobal Real Estate Market Overview: June 2012

Real estate markets across the globe are on positive trend with some bumps. Here are some brief highlights which should give you an idea of what’s going on across the globe.

– Fragile financial markets and continuing economic growth concerns are pushing away investors from stock markets.

– Real estate markets are showing positive trends and stabilization, and showing signs of increased volumes across the globe.

– Volumes increased in the 2012 second quarter than the first quarter in all markets such as Asia, Europe, Africa combined.

– However, home prices decreased in international markets due to the strains caused by Europe in early 2012.

– The U.S. markets started to stabilize in 2012, but it will take time to reach its full swing.

– Prime locations seem to be performing well as nouveau rich investors are fed up with the equity markets and seeking immediate to long-term growth in international real estate markets.

– There are still risks in the real estate markets due to the European debt crisis and sluggish global growth.

– However, buying affordability is strong due to low borrowing costs – which in turn will put real estate markets on sold ground for months to come.

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