As we closely approach the end of the new year which has brought with it many changes, including a new government and advancements and achievements in social and political climates, it’s interesting to look back at how the market has changed. More importantly, if you are looking to buy as a first-time buyer or an investor, things are quite interesting.
For first-time buyers this has been a good year, with many changes including Kiwibuild, low-interest rates, and the potential of the LVRs being lowered, even more, it has been a great time to buy. Many first-time buyers have been populating the property market in more outer lining suburbs such as South and West Auckland which have seen a massive boom in sales this year, which has been reflected in the QV evaluations which saw many houses in these areas rising significantly in value.
But that’s not to say the property market has changed for the better in the central suburbs, as house prices have remained steady in the central city. But at the same time, there seems to be a positive feeling across the country that house prices have peaked as the market edges closer to a ‘buyer’s market’. ASB’s quarterly housing confidence survey revealed that, of the people from the survey who believed it was a good time to buy increased from 14 per cent the previous quarter to 16 per cent.
This trend in buying confidence could continue, as last week the Reserve Bank indicated less likelihood of a cut to the interest-driving official cash rate, but it is most likely going to remain at its current record low of 1.75 per cent. This matched with some record low-interest rates as well as an increase in employment rates and a steadiness of population growth have also contributed to the buying market being more accessible.
What will be interesting to see going into 2019 is whether or not some of the grand government schemes such as Kiwibuild and the foreign buyers’ ban will have any significant effect on the market overall.
If you are looking to buy a property for investment purposes, then 2018 has been a year for commercial property investment, more so than residential property.
In terms of investment vs reward, there has been an increased interest and popularity in Commercial property, which has become quite popular with investors this year for many reasons. These reasons include more stable tenants such as business which have a higher turnover of profit and rarely treat the property with disrespect. With many changes in tenancy laws coming into effect worth the new government, commercial property has become more and more appealing.
This trend was quite apparent across winter 2018, as commercial property sales on the Auckland city fringe have boomed, with vendors indicating a huge surge in sales across winter in what they have whittled down to buyer demand for top quality commercial properties, particularly in the Auckland CBD and city fringe.