A slowdown in Australia’s housing market is prompting a growing number of property seekers to look across the Tasman, with New Zealand attracting increased interest from Australian investors.
"Given the recent changes here, looking outside of Australia is definitely something a lot of people my age are quite interested in", Parthiv Subramanian, a property investor in Australia, told 1News, adding he'd also potentially start looking at options in Aotearoa.
Subramanian is among a growing number of Australians exploring the New Zealand property market.
New data from realestate.co.nz shows searches from Australia-based property seekers increased by 190% in August compared with the same month last year. Interest had already begun rising in May, when searches were up 163% year-on-year.
The increase followed changes announced by the Australian Government affecting tax settings for property investors.
"They changed very materially the negative gearing and capital gains tax settings, which has made the landscape for property investment here in Australia very attractive for investors for more than a quarter of a century", Jacob Caine from the Real Estate Institute of Australia told 1News.
The changes were introduced as part of broader efforts to improve housing affordability and support first-home buyers.
However, New Zealand property professionals say the changes are also encouraging some Australian investors to consider opportunities across the Tasman.
"We can definitely see them searching for properties, but they're actually also enquiring, which means questions and enquiries are going through to real estate agents in New Zealand," Sarah Wood from realestate.co.nz said.
Wood said New Zealand’s tax environment is one factor attracting interest from Australian investors, particularly the absence of a capital gains tax.
"There's also quite a positive shift for the Australians in terms of our exchange rate as well, and that will be creating interest in our market from an investment standpoint", she said, as quoted by 1News.
Sydney recorded the biggest increase in interest, with searches rising 121.3%. Meanwhile, users in Perth and Brisbane were among the most engaged, saving more properties and returning to the platform more frequently.
Within New Zealand, Auckland, Central Otago and Canterbury attracted the most attention. All three regions have seen housing supply increase, providing prospective buyers with a wider range of properties to consider, as reported by 1News.
For New Zealand sellers, the additional interest could provide another source of potential buyers, although domestic purchasers continue to have plenty of choice.
"I think for a vendor selling in New Zealand, more interest is always a good thing. I do think in New Zealand we still have a large amount of homes for sale, so there's plenty of choice for New Zealand buyers as well as a few Australians coming in as well," Wood said, 1News has quoted.
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