Isaac Newton once famously said ‘what goes up, must come down’. And it would appear, much to our horror, he was right. The New Zealand property market has just undergone the biggest price correction on record, and Wellington has been hit the hardest of them all. So, let’s delve into what we can learn from the rollercoaster market of 2022.
The old American adage of ‘drive until you qualify’ played out over 2020 and 2021. Buyers pushed out of their preferred locations, set their sights on areas with more “affordable housing”. But what young person really wants to live miles away from their work and play?
In the heat of the market, many looked to buy new suburban townhouses (off plans) as the solution to their problems. But with settlement looming for many the appeal of owning those properties, now worth less than their purchase price and significantly more expensive to own, has waned. As the market dips, buyers are once again focused on homes in well-located suburbs.
Single Digit Growth
New Zealand property market records indicate that when held over the long-term property has single digit annual growth. Once the property hits its low point, perhaps after a plateau, this will return once again. But the short-lived dream of making 15-20% p.a is gone. This was merely a Lotto win for those who cashed in over the last couple of years. A time, similar to the 80’s stock market boom, we will all likely reminisce on long into the future.
Your House Needs Love
Without FOMO and the pressure of a rapidly rising market, buyers are taking their time to carefully select and research potential new homes. Generally speaking, buyers are no longer interested in taking on properties which have been neglected or display signs of deferred maintenance. But they are still excited about well-presented and well maintained properties. Failing to present your property for the market can cost you tens of thousands or even worse your entire sale.
The Wellington Market
It’s been a bumpy year in the residential property market. The cost of money has risen beyond what we all anticipated with the Reserve Bank signaling more to come. While it felt like we might have found the low point around September, surprise inflation data saw a further dip through October and November. Wellington has led the charge in terms of the market downturn, something we have not been that keen to spearhead. One positive to be taken is that it is often first in and first out, and given that we have been receiving multiple offers on many of our homes, let’s hope that ‘out’ is just around the corner.
We are looking forward to closing the door on 2022 and starting afresh in 2023. Have a safe and happy holiday with family and friends and we look forward to chatting about property in the new year.
Wellington Market Quick Stats
What’s On This December In Wellington?
The Grinch – Christmas Film Screening For Kids, Old St Pauls, 10th Dec
Old St Paul’s is inviting Wellington kids along to watch 2018’s animated film The Grinch on the big screen.
Bring cushions, make yourself comfortable and watch the Grinch and his pet dog Max, as they plan to stop Whoville’s Christmas celebration by stealing all the town’s decorations and gifts.
Click here to find out more info
Beauty And The Beast – The Pantomime, St James Theatre, 14th – 18th Dec
The beloved fairytale makes its way to Wellington’s St James Theatre stage in December.
From the producers of Madagascar The Musical and Christchurch season of the smash hit pantomime Cinderella, comes BEAUTY AND THE BEAST – THE PANTOMIME. Featuring an all-star cast including What Now star Erin Wells, The Voice Australia all star Caleb Jago-Ward, beloved New Zealand songstress Ali Harper and many more.
Idiom – The Iconic Variety Show, Te Auaha, 65 Dixon Street, 2nd – 23rd Dec
Comedy, circus, dance, and music – all in one action-packed box of crazy. It’s weird, it’s wacky, and it’s in Wellington.
IDIOM is the latest variety show from local production company Colossal, who present audiences with the perfect balance of comedy and spectacle. Come and experience a night of circus, dance, drag, music, and laughs.