Unless you have been on a complete spending freeze it would be hard not to have noticed the rapidly escalating costs of goods and services. Nowhere is this more evident than in the building industry which has been hit hard by supply issues. For years New Zealand has had relatively low inflation which is an indication of slow growth. One way to stimulate growth is to lower interest rates because it...
The central business district has historically been considered the heart of any city, but recent events have changed the way people use the CBD. So, how does the changing face of business influence our cities and the way we live? We are making steps all over the world towards vaccinating the masses in the hope of returning to some sense of normality. At some stage down the track we will look back on...
Price pressure It’s often been said that you can tell if a city is humming based on the number of cranes on a skyline. And I’ll tell you what, I’ve noted a fair few around here recently. So, is Wellington really humming? Cranes, and their association with a thriving economy, are generally an indication of new commercial construction. But in Wellington’s case, the bulk of the inner-city...
One indicator that a market is running hot is a dramatic fall in ‘days on market’. Just last week a TVNZ story noted that days on market were in decline across the country with Wellington the lowest of them all. So we pose the question, do low days on market equate to higher prices? Sold in 24hrs Every time I hear someone crowing about how quicky they sold their property, my eyes roll a...
It’s been a hot topic for as long as I have been in the industry but I still think the public at large can be forgiven for feeling somewhat blindsided by the announcements of last month. A Government that was voted in on a minor increase to the top tax rate and a promise of ‘that’s it’ for this term, but that wasn’t it. The five-year extension to the bright line test and removal of the interest...
Wellington wastewater issues continue to plague the city as our aging infrastructure haunts us. Last month trucks blocked main CBD routes as they were put to work removing wastewater to prevent another environmental issue in the harbour. No sooner had the trucks taken the sewage and buried it at the rubbish dump, did the pipes burst in Aro Valley. No wonder rates are on the (significant) rise! So what...
Most New Zealanders are back into the swing of things with the summer tan fading away under the office desk. Over summer we noticed a large number of real estate related articles on sites like Stuff and The New Zealand Herald. And we’re still seeing them now. The vast majority of these articles are positive for property owners but less so if you’re looking to buy. So, what does 2021 have in store for...
Post the 1950’s, the world has lived in relatively peaceful times. Yes there have been terrorist attacks. The Korean, Vietnam and Gulf wars. But it’s nothing that has threatened the overall safety of the world’s population. In fact, despite everything, we’ve always felt the human race has everything under control. But our complacency has left us vulnerable. And this black swan event, in the...
I suspect most people reading this blog have some interest in real estate and therefore are aware that the market is booming. Since emerging from lockdown in late April the Wellington market has moved around 13%. Why? Well, it’s been a perfect storm of low interest rates, loosening of LVR restrictions, rents holding (and actually increasing) and population growth. In March, when life as we knew it...
Buying a property in 2020 is a very different kettle of fish to buying a home even ten short years ago. Gone is that classic Kiwi ‘she’ll be right’ approach to real estate. Today’s buyers are knowledgeable and well researched. They can access a wide range of information and services quickly which means they know everything about your property before offering. So, as a seller, you need to as...