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Fewer buyers in Asia looking for NZ properties but average prices on Realestate.co.nz hit a new high in May

Property
Fewer buyers in Asia looking for NZ properties but average prices on Realestate.co.nz hit a new high in May

Less Asia-based buyers are searching for New Zealand properties on Realestate.co.nz, while more Aucklanders are looking outside of their home region for properties to buy.

The latest figures from Realestate.co.nz show that searches on the property website from potential buyers in Asia were down by 20% in May compared with May last year.

However that was largely offset by an increase in interest from potential buyers in Australia, the UK and USA.

And there has also been a jump in the number of Auckland-based users searching for properties in other regions.

The number of searches of Hawkes Bay properties by Auckland-based users was up 52% in May compared with May last year, with rises in searches by Aucklanders also occurring in Manawatu/Wanganui (+123%), Waikato (+114%), Northland (+86%) and Bay of Plenty (+84%).

"This is a dramatic change in online searching behaviour, which could well be driven by record property prices in Auckland," Realestate.co.nz chief executive Brendon Skipper said.

Those prices are still rising, with the average asking price of Auckland properties listed on the website in May increasing by 0.5% (compared to April) to hit a new record high $793,260.

That helped push the national average asking price to a new record high of $532,638 in May, up 2.1% compared with April.

Average asking prices were up in most regions in May compared to April, with the biggest increases occurring in the lower South Island, led by Central Otago/Lakes +15.7%, followed by Southland +12.5% and West Coast +11.3%.

In Wellington they rose 1.4% and in Canterbury they were up 0.3% (see graphic below for all regions).

The only regions that posted declines in average asking prices in May were Gisborne -8.7%, Manawatu/Wanganui -0.7%, Wairarapa -1.9% and Marlborough -1.9%.

The numbers of homes listed for sale on the website was mixed in May, with new listings up in Auckland, Waikato, Taranaki, Canterbury, the Central North Island and the West Coast , but down in all other regions.

Nationally, the website posted 10,381 new listings in May which was down 3.4% compared with May last year (see the chart below for the regional breakdown).

Housing inventory

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18 Comments

oh no! who are we going to blame now?
Dad and Mum investors? nah, lets keep thinking the problem is from outsiders

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it's still a huge problem. These stats could be due to increased competition online or the demise of realestate.co.nz. Even if these stats are accurate, it's still a massive problem.

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I do believe that Indian are also Asians and Iranians are also Asians as well.

Why choose a picture only featuring people resembling East Asians?

It looks like they pretend to go through something interesting.

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Choose? Mate, Greg took that snap down at the Barfoot office last week.

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Inventory chart is interesting...reminds me of an equity market peak on thin volumes. Time to hit the bid...

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Demand may be coming from the super rich asian immigrants government has already let in.

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doubling up and doubling-down

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Gisborne property market always overshoots in both directions, too high then too low.

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Simple test

Who will get it right?

AU:
AUSTRAC claims AU property being used as conduit for money laundering, increases scrutiny and reporting, Federal Government cracks down on foreign buyers, requires FIRB (OIO) approval, charges $5000 per application, forced sale of illegal purchases, 195 under investigation, forfeiture of any profit, no refund of 5% stamp-duty, Victorian Government charging additional 3% stamp duty plus ½% land tax, ATO has 156 transactions under investigation, APRA increasing prudential requirements

NZ:
IRD to use 2 year bright line test
RBNZ limits lending to Auckland-only investors-only to 70% LVR from October 1

Any chance of running a book on who will be right?

An interest.co office sweep

An interest.co survey poll

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We'll do what we always do: Tell ourselves we can't lose until we lose, then act surprised and try to find someone or something to blame.

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Another domino falls

Michael West ‏@MichaelWestBiz
https://twitter.com/MichaelWestBiz tweets

Wondering if flood of China money in Oz property is black? Here's $50m in just one Sydney house
http://bit.ly/1Jorw14

The mystery owner of Australia's most famous $52 million trophy home, Altona in Sydney's Point Piper, is a Chinese property developer who concealed his investment behind an elderly Melbourne couple to avoid foreign investment laws. Wang Zhijun paid $52 million for the harbourside mansion through a complex holding structure of shelf companies and holding trusts, including opaque nominee arrangements stretching from the Melbourne suburb of Elwood to the British Virgin Islands.

Mr Wang's identity emerged as he contests a million-dollar land tax bill and grapples with an Australian Tax Office probe

He doesn't even want to pay the land tax bill of $1 million

http://news.domain.com.au/domain/real-estate-news/point-pipers-altona-m…

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You're always pulling them out of the box Iconoclast.......wonder how he got more than his quota of Yuan out of China?

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Manwatu-wanganui the biggest gainer in terms of Auckland investor interest, more than doubling over past year.
Looks like I'm not the only one whos figured out P.N is an undervalued, international student filled goldmine. 700+ immigrants moved to PN over last year, on a per capita basis thats more than Benjes 'Booming Tauranga' and second only to Auckland.

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PN..I visit often...but struggle to find anything to do. Would welcome suggestions?

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find the road out, use it...

;]

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Go to Cloverlea Tavern, Highbury.. good pick up if you fancy some bogans

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Get a degree at Massey Unis largest campus, train in the army at NZs largest army base, train in the airforce at Ohakea, study food science at food HQ or be part of the Agri business scene at Agreserch. I dont live their myself and as its not a tourist destination dont visit much so cant help you with fun activities. Fun activites aren't what Im investing in btw...

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Interesting local observation.
Significant numbers and I mean significant, signs FOR RENT appearing on our East Auckland suburb streets.
Also we note the numbers of inadequately maintained properties exacerbated by the winter climate.
What does that all suggest?

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