March 2020 - "Never let a serious crisis go to waste"
Auckland Ray White agent Ross Hawkins says in the last recession, sale volumes went down and picked up at faster rate afterwards.
“There were people who were waiting, and they missed out on opportunities. It’s a good time to make a change and think about how this might change the way you think about your living.
However, everyone is affected differently and might not be in a position to buy now.
“If you have tourism business your hands are tied but there are people who have sold all their shares over the last few weeks and now they are all cashed up and property is the safest place to put your money,” Hawkins says.
“Property is tangible, you own it, you can feel it and touch it – it’s yours,” he adds.
UP’s Barry Thom says: “Life goes on. This too will pass, and in the meantime, we’ve got to get on with it.”
“The reality is, we will come through this – we just need to give time, time,” says Norwell, adding that, like everyone else, REINZ will be reviewing the emerging 'new normal' constantly.
Should you buy a house during a pandemic? The answer may surprise.. https://www.oneroof.co.nz/news/37704
In times of uncertainty it pays to remember:
The residential property market in New Zealand has a proven track record of long term stability throughout a number of cycles of volatility in stock markets and economic downturns
The markets that we operate in, see transactions between people who have genuine reasons for buying and selling and these markets have and will continue to perform regardless of the greater economic backdrop
Interest rates are at their lowest point ever and have potential to go further, due to the continued increase in average rents, yields look set to get even stronger
Affordability is continuing to increase as mortgage rates are driven down
People don’t commonly list their home during this sort of environment, you can be sure that property that is being listed now is genuinely for sale and has a motivated owner
Those that are waiting for the market to decline, may find that it barely wavers, stock tightens, competition increases and therefore mortgage rates go up. Effectively seeing those buyers ‘miss the boat’ once again
New Zealand’s position as a safe haven physically and economically will continue to see demand from off-shore as well as the ex-pat market
With the stock market seeing significant volatility, people are looking for stability in ‘bricks and mortar’
With any global event like this, we see a surge in sales to ex-pat kiwis that are looking to either return home in the immediate to mid-term. These buyers are often willing to pay a premium as New Zealand looks comparably affordable compared to Europe, Asia and other parts of the world
With interest rates dropping, buyer affordability is increasing
There is little stock in the market, therefore concentrating the buyer pool
With winter around the corner and the election later in the year, time is of the essence for those wanting to capitalise on the current momentum
House prices in Dunedin rise 20.8% - February 2020
Dunedin's house values are up by more than 20% on last year, which is more than double the increase in any other main centre, according to new figures. The average house price in Dunedin is now at $550,000 - a record median price and well ahead of Christchurch's average value of $510,575.
Quotable Value’s [QV] House Price Index data for January has Dunedin’s houses up 8.4% from just three months ago.
QV senior consultant Tim Gibson said there had been significant interest in all levels of the market in Dunedin, especially for two-bedroom units ‘‘as people look to downsize’’.
“We have seen some significant growth at the top end of the market with higher demand for $1.5 million-plus properties, driven by regional confidence and low interest rates,” QV senior consultant Tim Gibson said.
Real Estate Institute figures back that up. According to its Million Dollar Price Report, sales of houses in Otago worth more than $1 million rose 14.3% to 528.
Mr Gibson said local and out-of-town investors were entering the market, as were more young investors.
And they were taking risks to snatch up houses on offer.
“To increase the likelihood of their offer being accepted, potential purchasers are now placing emphasis on non-conditional offers, completing due diligence following acceptance.”
At a jump of 20.8% on last year, Dunedin is well ahead of the next main centre, Wellington, which had an increase of 9%.
Mr Gibson said long-term projects such as the new Dunedin hospital were driving demand.
Nationally, house values were up 4.4% to an average of $714,747.
The Queenstown-Lakes region had the smallest increase of all QV’s 16 designated main centres, up just 0.1%.
from my desk - market commentary
The Dunedin property market continues to remain extremely buoyant, with strong buyer interest reflected in high attendances at Open Homes and most properties being sold with multiple buyer offers. As a result most marketing campaigns are short, and very busy. The fundamentals remain the same; premium presentation and promotion will result in a premium sale. Quality property information is also critical and results in increased buyer interest, more competition, unconditional offers, and a higher sale price. I'm receiving very positive feedback from buyers about the ease of accessing property information, including a video tour, via my website.
There are a number of key factors that explain why Dunedin property values continue to rise. The governments decision to scrap the capital gains tax proposals last year has definitely seen investors return to the property market, and Dunedin's yields are more attractive than many other main centres. The recent drop in the official cash rate is seeing record low interest rates on offer. Dunedin's core businesses, the university, hospital and schools, continue to attract people to Dunedin, where we enjoy a better lifestyle. Compared to Auckland, and other main cities, property prices are comparatively more affordable. So all the indicators that underpin our market are positive. Finally, the fact that property values are increasing at a faster rate than any other main centre (20% gain over the past year) is in itself an incentive for buyers to get in, before prices are even higher in another year. So buyer motivation is in itself driving house prices further up.
The new hospital build, and other large infrastructure projects bode well for the Dunedin economy. Technology success stories such as Dunedin's RocketWerkz point to a new business direction that fits our local economy; where distance from markets becomes irrelevant, the product doesn't require shipping, synergies with our education and knowledge economy fit well, and people can enjoy a better work-life balance.
Dunedin is on trend with families returning here, or moving here, for schooling and a better quality of life. No sitting in traffic for hours. Central Otago only a drive away. Lots of space and fresh air. Dunedin has everything you need in a great little city and with the lower cost of living, you can take that holiday every winter.
Whether you're buying or selling getting the right advice is gold. Feel free to contact me for a chat.
Why Dunedin is New Zealand's Best Little City
Dunedin is booming
The timing couldn’t be better for business to capitalise on new opportunities. Both the University and the Polytechnic are investing in significant development upgrading their campuses. A $1.4B rebuild of Dunedin Hospital is due to commence around 2020. Early indications are that around 1,000 people will be needed in the city to assist in this project. Local Advisory Group convenor and former MP Pete Hodgson said the boom in the construction industry would not stop in 2026 when the hospital was completed. The University of Otago, Otago Polytechnic and the Dunedin City Council would be deliberately scheduling work for the years after the hospital build. “All this means that Dunedin’s construction sector is moving from a lower level of activity historically to a somewhat higher one for the next 12 or 15 years. “It isn’t going to be a boom and bust so much as one long and drawn-out boom.” (Source: www.odt.co.nz 18th July 2018)
Dunedin is a region of unique landscapes, is culturally rich, artistic, and has great heritage buildings
Enjoy getting close to rare wildlife and soaking up the quirky city vibe. Known as the Edinburgh of New Zealand, Dunedin is the country's city of the south, wearing its Scottish heritage with pride. Surrounded by dramatic hills and at the foot of a long, picturesque harbour, Dunedin is one of the best-preserved Victorian and Edwardian cities in the Southern Hemisphere. The accommodation is good and plentiful; the nightlife buzzes with funky bars and delicious restaurants and the natural attractions are unique and fascinating.
Dunedin is a confident commercial centre with a global focus and a strong emphasis on design and innovation, underpinned by cohesive business connections and a burgeoning talent pool. The city is enriched by successful businesses that produce cutting-edge products and services selling into global markets over a sustained period.
Strong knowledge base
As a city, Dunedin is fortunate to have acclaimed educational institutions and a number of businesses with strong research networks and a robust focus on R&D. Students, academics and entrepreneurs all contribute to:
the internationally recognised research capability of the University of Otago
the product development and market-testing expertise of the Otago Polytechnic
high investment in R&D by local industries.
Innovation and talent
Dunedin people are smart and resourceful, and this is a youthful city. Health technologies and biotechnology, niche manufacturing and engineering, ICT and creative industries have all grown over the past decade, benefitting from a workforce of educated, talented people.
As at June 2012, 70.7% of Dunedin’s population were of working age (15–64) compared to 66.1% of New Zealand’s population. (Statistics New Zealand 2012)
The style of doing business is open and relaxed, based on personal reputation and integrity. Dunedin’s small size makes it perfect for creating and fostering networks.
Dunedin's residents enjoy a high standard of cultural, leisure, public and natural amenities. The city boasts an enviable range of parks, reserves, tracks and cycleways. Our world-class venues and community facilities cater for everything from sporting events to concerts, exhibitions to festivals. And we have New Zealand’s largest collection of heritage buildings, some creatively restored for commercial and residential use, others enjoyed as churches, theatres and galleries.
A great lifestyle - and awarded most beautiful New Zealand city 2018
Dunedin has a strong sense of place and cultural heritage, held together by active social networks and a commitment to local community. It’s easy to get around the city, and the housing is affordable.
Residents say housing is the most affordable in the country and also rate the city as having the greatest sense of community, with 84% of those surveyed feeling they had a positive overall quality of life. (Quality of Life Survey 2014)
The average travel time for vehicles on key suburb to city routes at peak times during the morning shows the average travel time on the four key routes measured is less than 15 minutes. (Dunedin City Council Annual Plan 2013/14)
Nourished by a stunning natural environment with more green space per person than any other city in New Zealand, Dunedin residents enjoy the benefits of a focus on environmental sustainability.
Dunedin has a fantastic food scene - click on the link below to check out this review: