Kiwis still planning to buy, expect to pay more

Almost 20% of people planning a purchase in the next year are looking for an investment property.

Wednesday, September 28th 2016, 12:00AM

by The Landlord

A new report shows nearly half-a-million New Zealanders plan to purchase, sell the property they live in, or sell another property within the next year.

And 17% of those planning to buy are looking for an investment property. Just 3% are looking for a holiday home. More than three-quarters are looking for a house to live in.

Almost 40% of buyers are first-time purchasers, up from 34% in 2015.

Buyers expect to pay an average of $524,671 for a property, the research from Nielsen NZ found, up 3% year-on-year.

Tony Boyte, research director at Nielsen said, “With interest rates currently at an all-time low, continued migration increases and a housing shortage, especially in Auckland, the demand for property is still pushing up house prices, albeit at a more measured pace.”

Trade Me Property has the highest overall brand rating in the real estate market, followed byRealestate.co.nz.

The highest rated agency is Harcourts.

More than 80% of buyers expected to use online resources to give them information about their purchase.

“Online research is supplemented with up to four additional resources to support the buying process. Real estate magazines, ‘For Sale’ signs, brochures and agency window displays, still have an important role to play in helping consumers gather up the relevant information, find the right property and close the dea," Boyte said.

More than one in two property buyers do not currently have a mortgage. Of those who do have a mortgage, ANZ bank is the most popular holding a 15% share of the market. Twelve per cent of people in the property market say they are likely to change mortgage provider in the next 12 months.

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