Modest Growth Amidst National Recovery
In 2024, the NZ property market started to grow again for the first time in almost two years. It’s a hopeful time. Investors and homeowners are finding their way through a mix of steady and changing situations, both in the cities and the regions. With the Official Cash Rate OCR staying the same, everyone’s looking at smart ways to make their property choices work better, using what they know about the different growth trends and the economy to move ahead in this recovery.
The latest figures from the QV House Price Index for March 2024 offer both an overview and a deep dive into the current state of New Zealand’s property market.
The Economic Squeeze Continues to Influence the Property Market
The first quarter of 2024 has shown a modest yet steady rise in national home values, with an increase of 2.2% bringing the average home value to $924,734. This growth is somewhat consistent with the general market recovery, albeit at a slower pace than anticipated. Interestingly, despite the national uptrend, some major urban areas like Auckland have seen slight declines, a reflection of the mixed sentiments pervading the market.
Regional Analysis: Spotlight on Queenstown, Wellington, and Auckland.
Queenstown and Wellington: Leading the urban growth, Queenstown saw a 2.7% increase, with Wellington close behind at 2%. These areas remain attractive due to their robust local economies and scenic appeal.
Auckland: The super city experienced a slight decline of 0.2%, indicating a cooling period which could present buying opportunities for savvy investors.
Lead Regional Growth: Taranaki & Hawke’s Bay
Taranaki and Hawke’s Bay: Both regions demonstrated resilience, with Taranaki in particular showing a notable increase of 2.1% in New Plymouth, signaling strong local confidence.
Economic Forces at Play
The market continues to navigate through significant economic headwinds, including fluctuating interest rates and stringent credit conditions. The reintroduction of 80% interest deductibility for landlords is a notable shift, likely to influence investor decisions moving forward. This regulatory change underscores the importance of staying informed and adaptable, qualities that Norfolk Mortgage Trust embodies and promotes.
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, our experienced management team is dedicated to leveraging these insights to support your financial objectives through these evolving market conditions.
For more information and the opportunity to discuss Norfolk’s approach to lending contact Norfolk Mortgage Trust today.
Data Source: QV House Price Index, March 2024