“ This is the first time in several years where the data, sentiment and behaviour on the ground are all pointing north. Sellers aren’ t reacting to noise; they’ re responding to fundamentals.”
Daniel Coulson, Chief Executive, Ray White New Zealand
RESETTING THE FOUNDATIONS
In late November, the Government announced the most significant structural reform to local government in decades. Proposals to replace regional councils with Combined Territories Boards aim to remove duplication, improve accountability, and accelerate planning, infrastructure and environmental decision-making.
Coulson describes it as“ the beginning of a structural reset with the potential to influence property markets for a generation.”
“ Faster and clearer local decision-making affects everything from zoning and infrastructure rollout to the cost and speed of development. Homeowners may view this as a sign that the national operating environment is being rewired for growth.”
Population pressures add context. New Zealand’ s population has grown by an average of 1.8 per cent a year for the past decade, outpacing planning and financial frameworks set in the late 1980s.
Coulson says there is an opportunity here:“ reform acknowledges that our systems have lagged behind reality, and markets respond when governments start closing structural gaps.”
A STRENGTHENING ECONOMY
Following a year of false starts, the economic pulse is firming. Businesses are restocking at scale. Ports of Auckland has processed its highest container volume in nine years, with a wave of agricultural machinery and vehicle imports signalling renewed commercial activity.
Job advertisements have lifted for four consecutive months, now seven per cent higher than this time last year – and hiring has stabilised across most sectors.
Retail spending jumped 1.90 per cent in the September quarter, well above forecasts, showing monetary policy is finally flowing to households. Even with unemployment touching 5.30 per cent, many economists now believe this is the top of the cycle.
“ This is the kind of environment where decisions stop being deferred,” Coulson says.“ Buyers aren’ t waiting anymore. They’ re responding to broad-based improvement, and that’ s what drives early-cycle markets.”
RAY WHITE NOW NEW ZEALAND | 7