Through lockdown I thought things would be quiet for a while once the country opened…
- Low interest rates
Interest rates are at an all-time low and may even go lower. This is quite hard to imagine when we look back on the early 80s when rates hit 20%+.
- Rental market strength
There is still steady demand for quality rental properties as people potentially hold off purchasing their first home because of current uncertainty.
- The influx of Kiwis returning home
Once the border opens properly I believe kiwis will return in greater numbers and this will increase demand on the residential real estate and the rental property markets.
- New Zealand becoming a prime destination
Due to our isolation and the apparent elimination of Covid-19 New Zealand will be looked on favourably as a destination to move to for those wanting to leave countries where the virus still has a hold.
- The economic slow-down means less housing stock is being built which increases demand
Council are choked up so consents are slow, which has an impact on the number of new builds being completed.
- Building prices likely to increase
Building costs will go up meaning fewer houses may be built. And don’t even mention the failure of Kiwibuild!