New Zealand Dollar Drops

  • 16 years ago
  • Uncategorized
The New Zealand dollar has continued its decline, leading to increased interest in the country from international investors. In early September, the Kiwi dollar could buy just .47 Euros, .68 US dollars, and .38 British Pounds. That low rate means that, even for Americans, the country offers great bargains for real estate buyers from abroad.
Realtors in New Zealand have been marketing their properties to overseas buyers and, according to recent reports, been increasingly successful. One firm, Bayleys real estate, held an expo in South Africa and has seen a spike in inquiries about property from interested buyers there.
Sales for residential units in July increased from the previous month, according to the Real Estate Institute of New Zealand (REINZ). July saw 4,489 residential properties sold throughout the country, an increase of nearly 200 from June. The spring is just beginning down under, so the property season tends to pick up toward the end of the year.
The median price for homes sold in July remained NZ $340,000, the same as in June. That is just a small dip from the record high of $352,000 recorded in November of 2007. While the median prices have remained fairly constant across the country, the cities and metro areas have taken a hit as the rural areas have held their ground. Auckland’s median home price decreased 5.4% over the past 12 months to $421,000 and Canterbury’s median price fell 3.2% to $300,000.
While prices are remaining steady overall, the drop in the currency value has allowed foreign investors to purchase property for better value. Much as Europeans have been buying in the US, Americans and Europeans have been getting good deals in New Zealand. This trend looks to continue for the near future.
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