Hi Guys,
Story on the morning news today about the new zealand real estate agent Bayleys opening an office in the UK to sell homes to people from the UK about to move to NZ.
The story stated the office was opened in reponse to over 4000 enquiries from qualified buyers.
Interestingly only 30% of the current demand for properties is from “investors”.
The remaining 70% of buyers were from the UK who had begun the immigration process to NZ. (The NZ gov’t spends alot of dollars trying to encourage people from the UK to move to NZ – skilled workers – so it seems to be paying off).
These numbers are probably contrary to the popular perception about the source of foreign investment in property. So I thought that it might be interesting to post.
Kieran Trass was quoted in the same story as saying the price pressure as a result is unsustainable and is forcing local buyers out of the market. Not having much effect on the buying power of the UK investors though.
Cheers
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Hi Don
i think the issue of immigration is a very important one for all Kiwi investors to be aware of.
The Government needs to rethink its whole aproach to migration and increase the number coming to the country. Watch for population movement it could well dictate the direction of the NZ market.
It was interesting that when Bush won the last election the number of hits on the NZ migration web site was 4 times as high as usual. If things turn real nasty in the world there isn’t a better place to be than NZ. i could imagine lots of people wanting to move there/here. Plus there are about 1 million Kiwi’s living around the world , get 1 in 10 wanting to come home and that will be a huge then for NZ property.
There you go i said something positive about NZ real estate. Don’t get the wrong idea of what i’m thinking if people want to hold long term as i know is your strategy then you will do ok in NZ (not fantastic but ok).
regards westan
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