Nearly half a million New Zealanders (484,000) are planning to purchase, sell the property they live in, or sell another property (e.g. investment/holiday home) within the next 12 months.
Most people in the New Zealand property market are buyers (95%), with a high proportion of this group (38%) being first time home buyers. Over three quarters of market buyers are looking to purchase their primary residence (77%). Seventeen percent are buying for investment purposes – down from 19% in 2015.
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. Buyers expect to pay an average of $524,671 for a property; the expected price has increased by 3% compared to last year.
Using a real estate agency is the preferred method of buying property; however this has dropped three percentage points to 44% in the last year. A quarter (24%) plan to purchase privately and the same number are yet to decide.
Trade Me Property has the highest overall brand rating in the real estate market, followed by Realestate.co.nz. The highest rated agency is Harcourts.
When it comes to researching their dream home, more than four in five (82%) look to find information online. 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 deal.
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. There’s an opportunity for those involved in the home loans market to attract those buyers looking for a mortgage and also those not entirely satisfied with their current provider – 12% of people in the property market say they are likely to change mortgage provider in the next 12 months.
ABOUT THE NIELSEN REAL ESTATE REPORT 2016
The online survey was conducted August 2–14, 2016, and polled 1,200 New Zealanders researching property. The total sample size has a margin of error +- 2.9%.