Whilst there has been a substantial downturn in house prices across New Zealand, we are still seeing steady house sales in the South Island. Canterbury has recently become one of few growing regions for property prices, with an increase of 2.8% in the months leading into 2022.
There has been a slight correction post-covid from the considerable surge in house price growth and it is unlikely that we will see a soar in house prices like that anytime soon. However, we can look to the areas that are remaining more stable than others during this period of adjustment.
Canterbury seems to be holding fairly strong with the average house price sitting at $676,000 (NZ) and steady sales volumes in affluent areas. With the strength in this area of the market, it seems that development opportunities are flourishing.
We have recently settled four transactions in Canterbury, totalling $5M for the purpose of residential development and equity release, and have a plethora of transactions in the pipeline for similar locations where property is holding its value.
Another promising outlook for New Zealand’s property market is the gradual return of international travel. New Zealand has recently opened up their borders for international travellers and hospitality workers, which is a bright prospect for the hotel industry.
Hotel developments are lined up and with hotel quarantine contracts ending this year, visitors will now be able to populate these hotels and any others that are in the development phase.
Accommodating and housing offshore workers may be a pain point for hospitality employers but creates an opportunity for property developers to invest in projects that can provide accommodation for these overseas employees.
Wefund services the whole of New Zealand and has access to offshore funds. If you have a project that you require funding for, get in touch with our team today to learn about your funding options.
