WHAT NEW ZEALAND LOOKS LIKE FROM ACROSS THE TASMAN
The gap between the two markets has never been wider.
Australian house prices have roughly doubled since 2016, while New Zealand house prices grew strongly during the pandemic boom before correcting sharply.
New Zealand’ s national median peaked at $ 925,000 in November 2021 and has since fallen by up to 18 per cent, settling within a narrow $ 750,000 to $ 800,000 band for the past three years.
The exchange rate compounds the advantage. One Australian dollar currently buys 1.22 New Zealand dollars, the highest it has been in over a decade. For an Australian buyer, New Zealand property is materially cheaper in real terms than it was 18 months ago, independent of any movement in NZD prices. New Zealand’ s national median translates to approximately AUD $ 635,000 at today’ s exchange rate.
Beyond price and tax, the regulatory pathway for Australians is straightforward in a way that applies to almost no other group of foreign buyers. Under New Zealand’ s Overseas Investment Act( OIA), most non-residents require consent to purchase residential property. Australian citizens and permanent residents are largely exempt. They can buy houses, apartments, investment properties, and most lifestyle blocks without approval, and are treated similarly to New Zealand citizens.
Source: Cotality, REINZ, Ray White Economics
Source: OFX, Ray White Economics
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