The resilience of the New Zealand real estate market has never been more evident than over the past quarter. Prior to entering into the lockdown, the market was very strong and it would surprise many to see the continuing level of activity and the prices that are being achieved, although the market has operated under restrictive conditions and amidst negative and speculative media commentary.
While many are feeling a degree of anxiety in the broader community for the month of May, Ray White New Zealand sold 1,089 properties valued at NZ$843 million. This is a remarkable number given it is 76% of the sales that were completed in 2019. There are clear factors that give rise to the confidence of continuing market resilience.
The low inventory of property works in the seller’s favour given that there are potentially multiple purchasers for the number of properties that are available on the market. There is a high level of pre-approved purchasers which are able to make decisions based on continuing better affordability for the purchasing of property.