While other regions experience stagnant growth Asia-Pacific continues at a rate of 5.5 percent. New Zealand’s economy is one of the fastest growing in the Asia-Pacific regions at a rate of 3 percent and Auckland is it’s powerhouse economic hub. Auckland ranks highly as a new world city and it’s attracting migrants and global investors whom especially like to invest in real estate.
Property prices have surged upwards in many regions of New Zealand including Auckland and this hasn’t dampened offshore interest due to other fundamentals remaining very strong in Auckland. The economy is growing and some sources say businesses are 50 percent more productive in Auckland than in other regions of the country.
As of March 2015 Auckland’s economic output is about $88.3b, Canterbury is $32.9b and Wellington is $32.6b. All these regions are growing so the economic outlook is very positive. With property values rising the RBNZ see their role is to curb demand particularly in Auckland. Debt to loan ratio fixing is one tool that is being considered and doing so would prevent many residents from purchasing property while having less impact on foreign buyers so any move will need to be taken with all parties interests in mind.
One surefire way to get onto the property ladder is to buy properties that need renovating. PropertyTutors mentor property investors in Auckland and Wellington in the property trading strategy of buy, renovate sell or rent and it’s proving very popular with residents keen to secure their slice of New Zealand real estate.
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