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“Serious” investors nosing back into property market
By Mitchell Hall
Monday July 28 2008 - 11:30am
Softening prices are prompting investors back into the property market, according to First National Real Estate New Zealand.
First National General Manager John Stewart said their June survey showed investor inquiry was the highest in three months.
"Mum and Dad investors may have lost confidence but serious property investors are definitely back 'sniffing around' in increasing numbers, buying selected properties which, in most cases, they are subsidising on a weekly basis, although only to a minimal extent.
"Investors are the first ones to leave the market and the first to return, so this level of enquiry is an encouraging sign."
However, the middle of the housing market, especially the many houses under five years old in a relatively new subdivision shows no signs of reawakening soon, said Mr Stewart.
"There is a burgeoning concern that the middle family market of relatively new homes of mushroom colour or brick with tile roof, will be even more affected by the property slowdown due to the sheer weight of numbers on the market.
"For example, in one Christchurch subdivision, there have recently been more than a dozen very similar houses for sale and within $30,000 difference in price. Which one, if any, will sell? The person with a desperate need to get out.
The nationwide survey of the network's members also showed sales of properties priced below $250,000 made up to 95% of some office’s sales.
By Mitchell Hall
Monday July 28 2008 - 11:30am
Softening prices are prompting investors back into the property market, according to First National Real Estate New Zealand.
First National General Manager John Stewart said their June survey showed investor inquiry was the highest in three months.
"Mum and Dad investors may have lost confidence but serious property investors are definitely back 'sniffing around' in increasing numbers, buying selected properties which, in most cases, they are subsidising on a weekly basis, although only to a minimal extent.
"Investors are the first ones to leave the market and the first to return, so this level of enquiry is an encouraging sign."
However, the middle of the housing market, especially the many houses under five years old in a relatively new subdivision shows no signs of reawakening soon, said Mr Stewart.
"There is a burgeoning concern that the middle family market of relatively new homes of mushroom colour or brick with tile roof, will be even more affected by the property slowdown due to the sheer weight of numbers on the market.
"For example, in one Christchurch subdivision, there have recently been more than a dozen very similar houses for sale and within $30,000 difference in price. Which one, if any, will sell? The person with a desperate need to get out.
The nationwide survey of the network's members also showed sales of properties priced below $250,000 made up to 95% of some office’s sales.
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