A recent global report has delivered positive news, indicating a rising trajectory in housing prices is occurring in most advanced economies, including New Zealand.

The Financial Times from London report suggests a turning point in property markets, noting a 2.1% growth in nominal house prices across 37 OECD countries in Q3 2023 compared to the previous quarter. 

Additionally, the report noted that national data from New Zealand indicates a resurgence in house prices, as highlighted by the positive trends in the CoreLogic House Price Index. Over the past four months, property values have risen by 2.5%, reaching a national average of $928,184 since the low point in September.

Keith Niederer, General Manager, NZ, Raine & Horne, said it’s pleasing to see New Zealand real estate moving in the same direction as many other advanced economies. 

“It's therefore reassuring to note that the Reserve Bank of New Zealand decided to keep the official cash rate stable at 5.5% this week.”

In its monetary policy statement, the Reserve Bank observed that the New Zealand economy is demonstrating signs of improvement with a decline in core inflation and various other inflation measures.

“The central bank also acknowledged that robust net immigration has been a contributing factor to increased demand, exemplified by the recent upturn in rent prices,” Keith said. 

“However, the Reserve Bank also emphasised that the influx of immigrants has expanded the pool of available workers, making it easier for businesses to find workers.

“The stronger labour market should support property and boost demand, especially for rentals. In turn, this might push up yields, which is excellent news for landlords.”

Whether you want to sell or buy a property, don’t hesitate to contact your nearest Raine & Horne office.