Property continues to be a hot topic in New Zealand as housing becomes an issue of supply and demand. The country has a serious housing shortage and social deprivation, and property prices are beyond the means of many young potential home owners.
New Zealand Prime Minister, Jacinda Ardern’s, recent budget promised $234 million in funding to build 6,400 much-needed state and social homes in the next four years. The government is also promising they will build and sell thousands of affordable houses for first home buyers.
The approach is predicted to impact housing affordability around the country.
Median house prices in New Zealand increased by 1.9 per cent in April 2018 to $550,000, however, in April this year, Your Mortgage reported that residential property prices are forecast to slump by about 8 per cent, with lending to fall by more than one-third this year, according to a new report from Morgan Stanley. The report suggests that the fall is due to tighter macro prudential controls, rising funding and compliance costs and tougher checks on the creditworthiness of investors.
Commercial property
According to a new JLL report, Spotting the Opportunities: Flexible Space in Asia Pacific, the demand for co-working office space is growing faster in the Asia Pacific region than anywhere else in the world. Auckland’s supply of flexible floor space continues to grow, making it one of the leading choices in the region.
In fact, the report revealed that flexible office space operators doubled in Auckland between 2014 and 2017 and flexible floor space increased by 150 per cent. Latest predictions show that flexible work space could make up 30 per cent of corporate commercial property portfolios worldwide by 2030. This could mean increased international interest in commercial property, especially in Auckland.
