A latest news released was about the 2019 Election in Australia. Australian Prime Minister Scott Morrison has secured a majority government, capping off a shock result in Saturday’s election. With about 80% of votes counted, the Liberal-National coalition has now reached the 76 seats needed to control the lower house.
Will this affect New Zealand house market?
House prices in Auckland fell 2.1% over the year to February according to data from the Real Estate Institute, the biggest decline since 2009. But outside Auckland, price growth has been accelerating since June last year, reaching 7.9%pa in the latest data. Auckland’s affordability problems and restrictions on foreign buyers are constraining demand and appear to be preventing any further house price rises in the region. Nevertheless, solid economic growth, a tight labour market, and low mortgage rates mean that property owners are under little pressure to sell. Some vendors will lower their price expectations in coming months, which will show through in further house price declines, but forced sales are likely to remain rare. More than half of all respondents to the latest CPII expect house prices in Auckland to fall over the next year, up from about one-third of respondents who expressed a view on the region’s house prices in last year’s survey. Falling house prices were also the second most commonly chosen influence by respondents on residential property investment activity over the next five years, behind the prospect of a capital gains tax.
From our point of view,the changes in Australia may bring people back to New Zealand, and the housing price may increase due to the returning citizens. There will be increasing demand for the both rental and for purchase of property.
In 2019, due to the Government policies on controlling the house price, it may not have a huge jump on the price, but the property clock for Auckland is about the time to bounce back after the three years cooling down.
Keep positive on the market and let us help you if you are struggling with the slow season and market.
Contact us know on 09 985 5706 or Layla office@Metronz.co.nz.
Information Retrieved from www.crockers.co.nz