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Plenty of Christmas cheer as property rebound continues

December 18, 2023

As Christmas approaches, the resilience of New Zealand’s property market underscores why bricks and mortar will be the favoured investment class for 2024.

Following October’s 0.4% uptick in property values, the CoreLogic House Price Index recorded another increase of 0.7% in November. Consequently, average property values have surged by 1.1% over the last three months, marking an annual change of -4.5%, the most modest decline since November of the preceding year (-2.9%).

CoreLogic NZ Chief Property Economist Kelvin Davidson said signs of the emerging upturn were widespread around the leading centres in November.

Auckland, Hamilton, Tauranga, Wellington, and Christchurch all saw monthly rises in the range of 0.7%-0.9%, while Dunedin rose by a buoyant 1.9%.

“It’s no real surprise to see the second monthly rise in house prices for this emerging cycle, given that mortgage rates have shown clearer signs of peaking in recent weeks. Despite some elevated volatility in global financial markets, the labour market is still relatively robust, and net migration inflows remain very high,” Kelvin said.

Kelvin Davidson also noted that the now-formalised New Zealand Government may bring more confidence to the economy and housing market. Still, he expects it to take some time until a genuinely detailed housing policy framework is provided.

“Any changes to the Brightline Test or rules relating to mortgage interest deductibility won’t happen overnight either. In any case, the restraint of high mortgage rates isn’t about to alter dramatically,” he said.

Keith Niederer, General Manager of Raine & Horne NZ, acknowledged the undeniable challenges property owners faced over the last two years, navigating through rate hikes, political shifts, and fluctuating property values.

“As the festive season approaches, property owners end the year with much to celebrate, given the resurgence of property values. 

“Simultaneously, there remain abundant opportunities for buyers to acquire quality, well-located properties at reasonable prices, which augurs well for market activity in 2024.”

Whether you seeking to sell or buy a property please contact your nearest Raine & Horne office.