A message from our chief executive
Dear Property Owner ,
We have now stepped into the final quarter of 2024 , and New Zealand ’ s real estate landscape is riding an undercurrent of change , moulded by economic factors and the human behaviours that drive residential decision-making .
Market sentiment has shifted recently , with policy announcements and macroeconomic factors contributing to a growing sense of cautious optimism . Mortgage lending rates , for example , continue to edge down from high levels , encouraged by the Official Cash Rate ( OCR ) dropping to 4.75 per cent recently .
This is great news for buyers , sellers and the general economy , as Kiwis claw back some purchasing power and speculation suggests the Reserve Bank of New Zealand ( RBNZ ) may again cut the OCR by a further 50 basis points ( taking it to 4.25 per cent by year-end ) at its November Monetary Policy Review ( MPR ).
While this relief has been welcome news , resulting in a notable notch up in real estate activity , affordability does remain a persistent challenge for many – with this leg of the market cycle influenced as much by access to finance as it is by price expectations .
Calls for a Capital Gains Tax ( CGT ) have intensified lately . Though this is largely still speculative chatter , the mere mention of such policy continues to stir significant discussion across the real estate sector .
Global examples , like Ireland ’ s substantial increase in its ‘ mansion tax ’ and the International Monetary Fund ’ s ( IMF ) recommendation that New Zealand adopt a combination of a CGT , land values tax , and a reduced corporate tax rate , add fuel to the fire .
Though we ’ re a long road from any possible implementation , these conversations remind us of the complex economic and social considerations at play . The reality is that mortgage lending rates are just one part of the residential decision-making equation .
Demand from immigration has eased , but housing supply remains short in key urban centres . The construction sector faces ongoing challenges , and employment indicators influence the buying appetite . These factors all make a meaningful contribution to our dynamic market , where prices , while stabilising , remain influenced by many external forces .
At the same time , encouraging signs continue to fortify a broadening feeling of market confidence . Our auction rooms have benefited from both a lift in enquiry and participation , with a notable increase in registered and active bidders .
First-home buyers , often the most reactive to market shifts , are beginning to re-engage after a quiet spell . Early signs of the market recovery , particularly among this demographic , are promising , though the full extent of the upswing lies ahead .
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