Despite signs of a cooling housing market, most New Zealanders expect house prices to continue rising in the next 12 months.
Advance findings from Kiwi Wealth’s inaugural State of the Investor Nation, a comprehensive report looking at perceptions of wealth and wealth creation, show that 80% of Kiwis believe house prices will keep tracking up, with Wellingtonians most certain of increases.
State of the Investor Nation 2019 – advance findings:
• 91% believe house prices will continue to rise in Wellington
Of more than 2000 respondents to the Kiwi Wealth survey, 91% of Wellingtonians said they believed house prices would keep going up in their region. Aucklanders, meanwhile, were the least confident about the year ahead for house prices, with 72% believing prices would continue an upward trend.
Christchurch registered 77% confidence, followed by regional New Zealand at 83%.
“Property remains the prime investment focus and wealth indicator for many New Zealanders,” says Joe Bishop, Kiwi Wealth General Manager Customer, Product and Innovation.
“Prices have continued trending up for quite some time now. Increases in many places have been staggering, so it’s no surprise why Kiwis’ love affair with investing in property continues.
“We’re still seeing no end to the long-term trend of low interest rates and competition between lenders for new business continues to heat up.”
However, the survey showed people aged 18-34 (45%), those earning less than $70,000 a year (48%) and those renting (54%) were more likely to think it was not a good time to buy their first home.
“People in these groups are more likely to report living pay check to pay check, with very little – if anything – left over to save,” says Mr Bishop.
“With average asking prices at record highs, it’s little wonder some people are giving up on the dream of ever owning their own home.
“But as history tells us, markets can and do correct, so the cooling of activity in places like Auckland and Christchurch will be seen as a positive by those waiting for the right time to get on the ladder.”
The data has been released in in advance of Kiwi Wealth’s launch of its first State of the Investor Nation report. The full report will be published this month.