Property in Auckland is not on the market for long these days and at Auctions local buyers often battle it out with offshore buyers however New Zealand’s high dollar may put off the Aussie investors investing elsewhere around the country.
While New Zealand’s high dollar is not likely to put off other offshore buyers certainly it will more than likely reduce the number of Australian property investors buying here.
There was a time when bus loads of Australian investors would come to New Zealand on property buying sprees organised by property finders. These days are well and truly gone and even the most determined Australian investor will be thinking twice before investing here due to the high New Zealand dollar.
The local currency touched 96.22 Australian cents, its highest since the Aussie was floated in 1983, and was trading at 95.95 cents at 8am from 94.97 cents yesterday.
Auckland’s property market is an anomaly. It’s property values have risen to circa 40 percent in the past three years while the rest of the country (Christchurch excluded) has struggled to get into double figures.
The lower property value increases of Wellington, Dunedin and outer regions of New Zealand would normally be of interest to investors offshore, in particular the Australian property investors however the high New Zealand dollar will be dampening their earlier enthusiasm.
The New Zealand economical outlook for 2015 is bright and property values around the country expected to improve though the outer regions may continue to struggle. Arguably herein lies an opportunity for home buyers and investors to grab their slice of the kiwi dream albeit more than likely not in the million dollar suburbs of Auckland.
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