ISSUE
Friday, August 15, 2025
Volume 16 . Issue 72
With the current commentary about the thin presence in auction rooms across Auckland, you could say that the market has somewhat changed. The number of properties selling in auctions has dropped significantly, with some agencies reporting only four out of 10 properties selling through the auction process. Does this mean that the property market has reached its peak or is it a lull before the next storm of a good summer for selling houses?
Only time can tell, but the recent RBNZ ruling for investors and the changes brought about by IRD have had a huge impact on the investor sentiment. Under the new ruling, banks are asking investors to come up with 30% deposit to buy a residential rental property in Auckland and for every buyer (resident or non-resident) to have an IRD number for the IRD to be able to track down any profits made on a quick sale. This has certainly made investors take notice of the returns they will get on their rentals and the quick buy and flick investors have somewhat dried up.
The sellers, on the other hand, still want top dollars (sometimes even more) for their homes, whereas the buyers are being a bit more cautious of what they pay.
The new rules could take a couple of months for the market to digest, and once the rules are a bit clearer, it might bring the buyers out in the market. There is still a lot more people looking to buy their home compared to the number of properties available, and while the new homes are being built on the outskirts of Auckland, there is always going to be a lag between demand and supply.
As the fastest growing city in New Zealand with an increasing population and a preferred choice for immigrants for job opportunities, Auckland is like any other big cities in the world and this growth will always test the housing market.
If you are in the market to buy a property or refinance your current mortgage, give a call to Everest Home Loans at 0800 22 33 46 or visit their website www.everesthomeloans.co.nz.
With the current commentary about the thin presence in auction rooms across Auckland, you could say that the market has somewhat changed. The number of properties selling in auctions has dropped significantly, with some agencies reporting only four out of 10 properties selling through the auction...
With the current commentary about the thin presence in auction rooms across Auckland, you could say that the market has somewhat changed. The number of properties selling in auctions has dropped significantly, with some agencies reporting only four out of 10 properties selling through the auction process. Does this mean that the property market has reached its peak or is it a lull before the next storm of a good summer for selling houses?
Only time can tell, but the recent RBNZ ruling for investors and the changes brought about by IRD have had a huge impact on the investor sentiment. Under the new ruling, banks are asking investors to come up with 30% deposit to buy a residential rental property in Auckland and for every buyer (resident or non-resident) to have an IRD number for the IRD to be able to track down any profits made on a quick sale. This has certainly made investors take notice of the returns they will get on their rentals and the quick buy and flick investors have somewhat dried up.
The sellers, on the other hand, still want top dollars (sometimes even more) for their homes, whereas the buyers are being a bit more cautious of what they pay.
The new rules could take a couple of months for the market to digest, and once the rules are a bit clearer, it might bring the buyers out in the market. There is still a lot more people looking to buy their home compared to the number of properties available, and while the new homes are being built on the outskirts of Auckland, there is always going to be a lag between demand and supply.
As the fastest growing city in New Zealand with an increasing population and a preferred choice for immigrants for job opportunities, Auckland is like any other big cities in the world and this growth will always test the housing market.
If you are in the market to buy a property or refinance your current mortgage, give a call to Everest Home Loans at 0800 22 33 46 or visit their website www.everesthomeloans.co.nz.
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