Some of the pressure here has been relieved previously thanks to favourable tax treatment and lending rules . In 2021 , as a temporary measure to support the construction sector and encourage new housing supply in the thick of the COVID-19 pandemic , policymakers exempted new-build properties from loan-to-value ratio ( LVR ) rules in a bid to make it easier to buy and build new .
Residential investors , too , retained the ability to deduct interest expenses from their rental income when the previous government changed its tax policy for most investors in the same year .
Following a change in Government and the recent announcement allowing investors to once again claim 80 per cent of their interest costs starting from April this year , and 100 per cent from next , the advantage of purchasing new , particularly in relation to an existing property , has somewhat diminished .
WHERE TO FROM HERE ?
Residential building consents have trended mainly downward over the past year , with the exception of a bumper February , which saw national consent issuance rise 15 per cent following a weak holiday result in January .
Despite February ’ s bounce , forecasters expect a further reduction in the number of building consents issued in the coming year and a slowing in the pipeline of planned works .
While construction activity is slowing , New Zealand ’ s population continues to rise and the national housing deficit is widening .
Analysts from ANZ Bank report that the country may be close to a cumulative deficit of around 30,000 residences , putting pressure on existing supply and increasing competition amongst buyers for new projects at or near completion .
The housing landscape in 2024 presents a balancing act of value , with subjective pricing providing an opportunity for buyers and sellers . While building new may come with the advantage of customisation and modern amenities , it often entails higher costs due to land prices , construction expenses , and community contributions . At the same time , existing properties usually provide established features in prime locations , which appeals to buyers seeking value and convenience .
As the market continues to evolve , we can expect to see continued change as trends , construction costs , politics , and land pricing influence values . Whether a new-build property or an existing home suits your budget is entirely dependent on your lifestyle , and our trained professionals across the Ray White network would gladly assist with any enquiries you have about new developments or our current catalogue of available listings .
At the same time , developers have reported it has become more challenging to achieve necessary pre-sales to secure finance , and several big firms have already discounted product pricing to clear stock and proceed with other projects .
These dynamics reflect a narrowing gap between the market pricing of new-build and existing property , indicating that economic conditions are currently offering opportunities for buyers across the board .
Photo : 39 Maungakiekie Avenue , Greenlane Proudly marketed by Dean Tuffley , Ray White Mt Eden
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