“Despite a big part of the country being in lockdown
and interest rate rises imminent, September produced some
great numbers for real estate in the regions,” says Tim
Kearins, Owner of Century 21 New Zealand.
Tim Kearins, Owner of
Century 21 New Zealand
His comments follow REINZ
releasing its Monthly Property Report for September – a
month which saw median house prices across New Zealand
increase by 15.4% to $795,000 compared to same time last
“Strong demand for housing continues despite
New Zealand facing its biggest challenges around Covid-19 to
date. It just proves the real resilience of the market and
Kiwis’ strong and ongoing belief that residential property
remains a great place to invest,” says Mr
Century 21 offices south of Auckland, he
says, continue to report strong buyer interest and great
sale prices under Level 2.
With Auckland in Level 4
and Level 3 lockdowns throughout the whole of September,
activity was naturally down but the region continues to do
relatively well with pockets of price growth
“Century 21’s salespeople have enjoyed
phenomenal success despite the Level 3 and 4 lockdowns. They
have never stopped working and delivering results for buyers
and sellers alike, despite the obvious restrictions and
challenges,” he says.
With REINZ headlining
‘Lockdown curtails Auckland activity, the rest of New
Zealand begins to see spring lift, seven out of 16 regions
reached new record median prices. Auckland’s median price
in September was up 20.4% to $1,150,000 compared to 12
months ago, but down 4.2% from its record $1,200,000 in
The shortage of houses available for sale
continues, with September showing more low levels of
inventory, but the numbers of listings in the regions are
On 6 October, the Reserve Bank lifted the
Official Cash Rate by 25 basis-points to 0.50% – the first
OCR hike by the central bank in over seven years.
Nonetheless, bank rates still remain low.
says despite banks factoring in an OCR increase back in
September and buyers increasingly aware that rate rises were
imminent, the real estate market soldiered
“These numbers show that as long as servicing a
mortgage remains comparable, or even cheaper than paying
rent, prospective buyers will not be put off.
well as an ongoing housing shortage, another contributing
factor to the strength of the market is the painful
alternative of renting. Let’s not forget New Zealand is
one of the most expensive places to rent when you compare
the proportion of tenants’ rent with other monthly
outgoings,” he says.
Tim Kearins says young Kiwis
who can pull together a deposit, show their lenders good
serviceability, and then manage to purchase their first home
will never regret their decision. Property ownership has
proven to add to people’s security and quality of