Why Kiwis love property
New Zealanders do have a slight obsession with real estate. In fact, it might be an unhealthy one. To understand this love affair we need to look back at history and unearth how it is that home ownership has become so ingrained in our culture.
New Zealand’s population took off in the mid 1800’s with the majority of migrants settling here from the United Kingdom, Australia and Ireland. Described as pioneers, these migrants generally occupied the lower classes in their countries of origin therefore land ownership tended to be out of reach. Having had to be content with occupying property on leasehold land, land ownership in New Zealand provided an exciting opportunity. Since the very early days of European settlement in New Zealand, the dream and reality of property ownership has been passed down through the generations. It was an integral part of the New Zealand psyche, until now. For the first time since these migrants arrived we have a new generation of New Zealanders who may choose to rent for the rest of their lives, returning, in a way, to a leasehold manner of occupation. Renting for life is common place in Europe where tenants rent the same property for decades, but this is something that hasn’t been seen in New Zealand. There are both positives and negatives to this scenario including a better standard of accommodation available for tenants and longer more secure tenancies (with no break in rental income) for landlords. The negatives of this for property owners who are looking to sell include a shrinking pool of buyers and a rent versus ownership approach to value.
The Wellington Market
For those who keep a close eye on things, you will have noticed an increase in new listings and those tell-tale ‘Sold’ stickers indicating renewed activity in the market. Family homes and properties in good established suburbs continue to attract good interest but properties that continue to have maintenance issues and building problems are being given a wide berth. For anyone looking to sell, my advice to clients is to make sure they know their property inside out prior to bringing it to the market. This can include ordering building and LIM reports on the property. Being fully informed of any potential defects and having the opportunity to remedy these prior to marketing ensures that together we, not the buyer, maintain control of the sales process. After all, knowledge is power.
Wellington Region Property Statistics
Wellington Median Sale Price
Average days to sell is 41.2