The Impact of Offshore Buyers on New Zealand Home Sales

Foreign Homebuyers in AucklandForeign homebuyers acquired 1,749 properties in New Zealand out of the 57,678 homes that were sold in the second quarter of 2016, the New Zealand Herald‎ reported.

If you’re looking to sell property, there is good news. House valuations across the country have reached more than NZ$600,000 for the first time, according to Quotable Value data. In Auckland, the value of homes rose even further, increasing to almost NZ$1 million.

Overseas Hunters

The number of homes purchased by offshore buyers represented 3% of the total between April and June. In the first quarter of 2016, foreigners also accounted for the same percentage of sold properties. Non-residents in Auckland acquired 900 properties during the second quarter, up by one point to 5% on the first quarter.

The Chinese tax residents purchased almost half of the Auckland homes sold in the previous quarter. In terms of overall transactions, those with New Zealand tax residency represented 60% of home sales.

Although the latest data does not show a register of home ownership amongst overseas buyers, it could indicate the current trend in the country’s real estate sector, according to Land Information New Zealand Deputy CEO Russell Turner.

Valuable Possessions

The Quotable Value House Price index said that the average value of homes in New Zealand has reached NZ$602,434, while Auckland average values hit NZ$992,207. Several factors led to the increase, Quotable Value national spokesperson Andrea Rush said.

These include low interest rates, robust investor activity and high net migration that have propelled house valuations in many parts of the country.

Some places such as Hamilton are currently seeing a shortage of supply of homes to meet a steadily increasing demand, particularly for properties priced between NZ$400,000 and NZ$600,000, according to Stephen Hare, Quotable Value homevalue Hamilton valuer.

Before you jump the gun and put a for-sale tag on your property, check in first with experienced real estate agencies to make sure your home could be sold for the highest possible price.