An Update into Selling Property in New Zealand in 2016

An Update into Selling Property in New Zealand in 2016

 If you’re planning to sell property in New Zealand, you will know that New Zealand has a rather divided housing market. While there’s a major property boom in Auckland, we don’t see anything quite like that in the rest of the country.

Auckland is, of course, the biggest city in New Zealand with one-third of the nation’s population. Property prices in Auckland have risen consistently over the last decade and a half and show no signs of slowing down.

 In 2015, property prices in Auckland grew by a phenomenal 20 percent. An average property in Auckland cost $875,000, which is pretty high indeed. Auckland is one of the most expensive cities in the world.

What drives Auckland is immigration, both from other places in New Zealand and from the rest of the world. Auckland is a global city and seemingly everybody wants to live there.

What of the rest of New Zealand? Well, cities such as Christchurch, Wellington, and Napier haven’t performed too badly in the housing market, experiencing an average rise in property prices of 11.3%.

 This year, the rise in property prices across New Zealand is expected to be slightly muted. New Zealand’s banks have made a concerted effort to reduce speculative investment in property.

Many overseas buyers have realized that prices in New Zealand are on the high side, which is why many have decided to sit tight and wait things to stabilize a bit.

It’s not unusual for property prices to drop a bit after so many years of consistent growth, and it’s healthy for the market in the long run. This keeps prices from getting out of control. 

We don’t see a housing bubble in the rest of New Zealand, as we see one in Auckland. So there are a plenty of excellent opportunities in Christchurch or Wellington to those who want to buy property in New Zealand. Dunedin has been experiencing a steady growth in property prices. Hamilton and Tauranga have done pretty well too, with prices increasing by 10.3% and 8.6% here.

Auckland is an outlier, of course, and its phenomenal growth has spread to the other smaller cities in its backyard, like Illawara and Newcastle. There are many who find Auckland unaffordable and have bought apartments here and commute to Auckland for work by public transport on a daily basis.

 New Zealand is one of the most stable countries in the world, both politically and economically. We don’t quite see the same shocks to the New Zealand economy as we have seen in many other countries. There is a lot of confidence in the direction that New Zealand is heading at.

 Selling property in New Zealand is one of the easiest things in the world as there are no complex regulations or laws to hold you back. There is no capital gains tax on the sale of a property in New Zealand; so as a seller, you get to keep your profit.

Most people in New Zealand hire estate agents to market the property for them to the right buyers. Estate agents typically charge 3.95% of the property price as their fees. There are other charges such as a small deposit of $500, which is to be paid as the admin fee.

Buyers are required to make a deposit of 10% once the sale has been agreed to and the initial agreement has been signed. Sellers cannot reconsider their decision once the deposit has been made. Estate agents get paid only after the conclusion of the sale of the property. It really is a simple process and there isn’t much that could go wrong. 

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