New Zealand’s Property Market
Articles > New Zealand's Property Market
New Zealand has a vast array of housing options, from compact studios in the cities, to rural farms in its stunning countryside. Property prices are much higher than South Africa. However, New Zealand salaries are higher and the tax man takes a smaller cut; what’s more, education and healthcare are free. Also, New Zealand’s safe environment eliminates the need for high security costs. Taking these factors into consideration, you’ll probably find your monthly outgoings are less in New Zealand than South Africa, giving you a higher disposable income to enjoy everything this country has to offer.
Westpac economists estimate that house prices in Auckland will rise by an average of 5% in 2020, with national prices rising even higher, possibly 7% by April 2020.
Property prices vary from area to area and, as in most countries in the world, they are generally more expensive in urban areas. Many properties are sold by auction, although this trend seems to be fading, with fewer properties auctioned in 2019.
January 2020 saw the busiest January in four years for house sales, which is unusual for the first month of the year. It points to an increasing confidence in the housing market, probably produced by a relatively strong economy, a low unemployment rate and low interest rates.
Mortgage/Bond Interest Rate
The average fixed mortgage rate in New Zealand, as of February 2020, is between 4.00% and 4.5%, whereas the mortgage rate at the major banks in South Africa is 9.75%. That makes a massive difference to your monthly repayments.
North and South Island Properties
North Island – Median Selling Prices
South Island – Median Selling Prices
Websites Showing Properties for Rent and Sale
Have a look at the following websites to see what’s on offer in every part of New Zealand.