January ‘24 NZ Property Market Snapshot & Insights for Norfolk Mortgage Trust Clients

The beginning of 2024 has seen the New Zealand property market continue its journey of recovery, albeit at a gradual pace. For investors and clients of Norfolk Mortgage Trust (NMT), understanding these dynamics is crucial to making informed decisions about their investments. Drawing on the latest data from the QV House Price Index of January 2024, we delve into what these trends mean for you and how NMT stands as your trusted partner in navigating the property investment landscape.

National Market Overview: A Steady Climb

The QV House Price Index report for January 2024 paints a picture of a property market that is gradually regaining its strength. With a national average home value increase of 2% this quarter, reaching $925,461, it’s clear that the market is moving in a positive direction. This increment, although modest, is indicative of a faster rate of growth compared to the previous quarter, signaling a resilient market amidst economic challenges.

Regional Highlights: Strong, Steady and Subdued
  • Queenstown, Christchurch, and Dunedin lead the charge with notable increases in home values this quarter. Queenstown, in particular, saw a remarkable 4.4% rise, showcasing the region’s appeal and potential for investors.
  • Auckland and Northland continue to show steady growth, with specific areas like the North Shore and Manukau experiencing significant gains. These regions represent stable investment opportunities, with Auckland’s market showing signs of a slow but steady recovery.
  • Tauranga and Waikato reflect a more subdued growth pattern this quarter, yet they remain areas with potential, especially as broader economic factors such as interest rates begin to stabilize.
Market Dynamics: Confidence and Cautious Optimism

The January QV report highlights a shift in mindset among prospective buyers, fueled by expectations of easing interest rates and favourable changes in investment conditions. This renewed confidence, coupled with a careful return to the market, suggests a landscape ripe with opportunities for discerning investors.

Key Trends

James Wilson, the Operations Manager at Quotable Value (QV), notes that while the market shows volatility in areas with fewer sales, the overall trend indicates a gradual but firm strengthening of the housing sector. This period has witnessed a significant shift in buyer attitudes, driven by the anticipation of reduced interest rates and the reinstatement of interest deductibility for investors. As a result, there is a cautious but increasing re-engagement with the market.

Steady Growth, Steady Returns

For investors and stakeholders, this evolving market landscape underscores the importance of strategic planning and informed decision-making. For our investors at Norfolk Mortgage Trust, rest assured that our team is dedicated to leveraging these insights to support your financial objectives. We believe that informed decisions are key to successful property investment and management, and we are here to guide you through these evolving market conditions.

For more information and the opportunity to discuss Norfolk’s approach to lending contact Norfolk Mortgage Trust today.

Download the Investment Guide