Why property prices are rising in New Zealand

  • 12 years ago
  • Uncategorized

New Zealand is seeing an
increasing number of foreign property buyers but experts are concerned that
wealthy overseas investors are contributing to rocketing property prices.

More and more people are buying
in the beautiful country including many from China and other parts of
Asia.  If you’re thinking of buying
property in New Zealand, keep reading for the latest news.

New Zealand homes in huge demand with foreign buyers

Real estate agent Graham Wall has
recently sold two large properties to overseas investors and believes that
luxury homes are in high demand from foreign buyers.

He said: “Why we are getting
record prices for Auckland, Hawkes Bay and Queenstown houses is that people
outside New Zealand can see its worth.”

Critics are concerned that
wealthy buyers from abroad are contributing to rising house prices in the
country and ‘ruining the economy. 
Mr Wall, however, doesn’t agree. 
He added: “I hold the opposite opinion to house-price critics.”

Westpac chief economist Dominick
Stephens agrees, and doesn’t believe that increasing numbers of foreign buyers
have driven the latest property price rises.  He said that net migration was at its lowest level in 10
years.

He told the New Zealand Herald that ‘cheap interest rates and severe
under-building were responsible for the big Auckland prices’.

Ross Hawkins of Sotheby’s
International said wealthy foreign buyers including many from Asia were looking
to spend millions on Auckland houses.

“30 per cent of our inquiries are
coming from offshore,” Mr Hawkins said.

Earlier this year, Hollywood’s
James Cameron bought more than 1000 hectares at Western Lake in South
Wairarapa, but only after getting approval.  The Titanic and Avatar director plans to live there with
his family.

Author : Nick
Marr

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