Podcast
Has New Zealand’s
love affair
with property changed?
Property prices, investor confidence, rising costs, first-home buyers
and a growing appetite for shares. This NBR Podcast looks at whether
New Zealand’s relationship with property is beginning to shift.
For decades, residential property has been one of New Zealand’s favourite
ways to build wealth. But after several years of falling prices, higher
costs and changing investor behaviour, the old assumptions are being
questioned.
The 60-second read
It’s a buyers’ market
Property values remain well below their 2022 peak nationally, while
listings are high and buyers have far less reason to rush.
First-home buyers are thriving
First-home buyers are taking a record share of property purchases,
helped by greater choice and reduced competition.
Investing has become more hands-on
Investors increasingly need to focus on cash flow, costs and good
management rather than simply assuming the property will rise in value.
Costs are still biting
Flat rents, council rates, insurance, maintenance and mortgage costs
continue to put pressure on returns.
Politics is influencing decisions
Potential tax and interest deductibility changes are creating another
layer of uncertainty ahead of the election.
Kiwis are looking elsewhere too
KiwiSaver and investment platforms are making shares more accessible,
giving New Zealanders more ways to build long-term wealth.
a business, rather than a bet on ever-rising house prices.
What caught our attention
The regions are telling very different stories
Auckland and Wellington have seen much steeper declines, while
parts of the South Island have been considerably more resilient.
The old investment assumptions are being challenged
Buying a property and simply waiting for it to double in value is
no longer the strategy investors can automatically rely on.
Housing affordability could be changing the market itself
Greater housing supply and stronger first-home buyer participation
could create a healthier, more balanced market over time.
Property now has more competition for our investment dollars
A younger generation of New Zealanders is increasingly comfortable
investing in shares alongside, or instead of, property.