Those of us who are thinking seriously about relocating to New Zealand had better prepare for a rather sharp price raise in real estate. New Zealand has always been a popular destination for expats around the world and it is believed that this is causing some serious issues with the demand and supply figures within the housing market.
Immigration Linked to Rising Demands
New Zealand is such a desirable place to live that the number of migrants has also risen recently and because the housing availability was already struggling to deal with new homeowners and rental demand, this has meant something has to give.
Experts are predicting something in the region of a 12 percent rise in existing real estate prices by December 2015. This is linked to up to 45,000 immigrants being expected by the end of 2014.
New Zealand real estate has already bore witness to a 10 percent rise during 2013 and a recently relaxed immigration policy has meant that more students and skilled workers are en-route in the near future.
NZ Economy Still Healthy
Recent years have seen a fall in the number of people making the move to New Zealand and this is linked to the mining sector having major issues over the last decade. Another factor worth taking into consideration is that New Zealanders who live in Australia are now unable to claim for out of work benefits.
Despite this, New Zealand has a very healthy economy, better than its larger antipodean neighbour, and these factors have all added to the pressure being applied to a fragile real estate infrastructure.
The government is doing its best to avoid focusing on this impending problem and they have recently done away with import tax and duty on house building materials. By building homes for less, it is hoped that the real estate industry will be able to stretch sufficiently to accommodate the expected hordes of new workers and their respective families.