Numbers from realestate.co.nz indicate that the New Zealand real estate market is returning to form, with demand for property increasing steadily over the last 12 months.
Year-on-year, demand increased during October in New Zealand’s main centres of Auckland, Bay of Plenty, Waikato, Wellington, and Canterbury.
Wellington saw the biggest increase in demand, with searches up by 47.7%, followed by Waikato up 8.0%, Auckland up 6.4%, Bay of Plenty up 3.9%, and Canterbury up 1.7%.
Engagements per listing were also up in these regions, again with Wellington leading the way, up 88.5%, Bay of Plenty up 54.7%, Auckland up 47.7%, Waikato up 46.3%, and Canterbury up 14.7%.
Vanessa Williams, spokesperson for realestate.co.nz, says there is more interest from buyers now than there was a year ago: “Buyers aren’t just searching for property but saving their favourites and making the move to enquire with a real estate agent about a property that best fits their lifestyle.”
“And, relative to the number of homes available, they are doing this more than they were in October 2022.”
Demand highest in Gisborne, Central Otago Lakes District and Otago
Year-on-year, the main centres might have seen demand grow. But Gisborne, Otago, and Central Otago/Lakes District have consistently seen higher demand than any other region in New Zealand over the last 12 months.
Gisborne had the highest number of searches per listing during October, with similar numbers seen over the last year.
Vanessa says some of this could be related to cyclone damage in the region cutting into supply. “We have seen low stock levels in Gisborne throughout the year, which could be contributing to more competition for the homes that are available for sale in the area.”
Comparatively, Auckland had around a fifth of the number of searches per listing during October. Central Otago/Lakes District and Otago were the next most in-demand regions, and interestingly, a lot of this is being driven by Aucklanders.
Property seekers looking outside their region
In October, Auckland buyers conducted the most property searches for Central Otago/Lakes District and Otago compared to any other location. Aucklanders accounted for 29.9% of the total searches, followed by buyers located in Christchurch accounting for 16.0% and Queenstown locals for 14.2%.
It’s a similar story in Otago, with 29.8% of the total searches performed by Aucklanders, compared to 16.9% by people in Dunedin.
Vanessa Williams says, “Competition for property is likely high in these regions and will often include international buyers and people wanting to move from other parts of New Zealand or buy as second homes. Given how beautiful these parts of the country are, it is hardly surprising.”
“This might be good news for anyone looking to sell in these regions.”
Keith Niederer, General Manager, Raine & Horne NZ said the heightened interest from multiple sources of buyers, including local, national, and potentially international buyers, indicates increased competition for available properties in New Zealand.
“This competition could potentially lead to higher property prices in 2024 and more favourable conditions for sellers, especially in regions experiencing higher demand.”
For further information regarding the advantages of auctioning your property, please contact your nearest Raine & Horne office.