Migration will keep the Auckland housing market bubbling along nicely this year according to Harcourts’ CEO Chris Kennedy.
Last year more than 70,000 new arrivals settled in New Zealand with 60 per cent choosing to live in the SuperCity — that’s 42,000 people looking for around 14,000 homes at a time when the city was already short of 20,000 homes.
The inward migration trend is likely to continue unless government tightens the system up, and there’s no outward sign of that happening.
Kennedy says there has been a fall in the number of property investors since they needed a 40 per cent deposit under loan to value ratio rules introduced in November.
“With investment dropping away a little, the market may not remain at the same speeds that we have seen in 2015-16,” he says.
Kennedy says it’s important to remember that a market cooling isn’t the same as saying a bubble is bursting. It’s just merely returning to the more balanced activity levels of prior to 2014 that still allows room for growth, he says.