New Zealand Housing

By international standards housing in New Zealand is affordable. There are significant regional differences in house prices across the country.

Auckland leads the country as the most expensive city, however as with any city, wide variations in house prices occur. Inner city apartments have been a growing trend and these offer an alternative for those not wanting a traditional house and section.

House prices during the past few years have been moving higher especially in the Auckland region following small declines during the global financial crisis.

Mortgages are generally easily obtained as long as applicants fulfil the required criteria. It is not uncommon for banks to lend up to 90% of the valuation of a property, provided there is security in that property and the applicant has Permanent Residence (this is not a law, it is a bank requirement usually). At the present time interest rates vary from 5.5% - 7.5% depending on whether you are after fixed or floating rates. Interest rates are set by banks; there is no Government involvement.

The Reserve Bank, which operates as a "central bank" is charged with managing inflation and it is their approach that impacts on interest rates. Experience suggests that most migrants will settle in Auckland.

House prices vary from $100,000 to $25 million dollars. The Auckland region median house price in March 2012 was just over $536,000, Wellington $440,000, Christchurch $388,000 and Dunedin $273,000. There is a wide variation in price and quality, however a well maintained, three bedroom bungalow, with modern appointments and on a 850 square metre section located in an inner city suburb of Auckland could be acquired for $500,000 - $750,000.

Older houses may have less storage than you are used to if you are from countries like South Africa but newer homes (aged 10 years and under) are designed with the conspicuous consumption of their 21st century owners firmly in mind! All homes, whether rented or purchased come with a stove (so leave yours at home). Everything else such as dishwashers, fridges, curtains etc is negotiable with the vendor.

Our advice generally is to bring with you your personal possessions and furniture as new furniture might be expensive compared to where you live. Also, sleeping in your own bed in a strange land can be comforting during a stressful time.

Renting versus Buying in New Zealand

Initially the vast majority of migrants rent. The reasons for this are many. You may need to check out schools before you decide on the one you like, you won't generally have an understanding of the better (or worse) areas, you may well even end up moving to the other end of NZ within a few weeks of arrival as you may not find work in your city/area of first choice or take up a new position shortly after arrival.

In the major centres finding unfurnished rental properties is not normally difficult although in recent years with high rates of inward migration accommodation has been more difficult to secure (particularly in Auckland) and by historical standards more expensive (but still less so than cities like Sydney or Vancouver). In Auckland expect to pay $1250 - $1500 per month for 3 - 4 bedroom unfurnished (add around $500 a month for furnished at least) homes in middle / upper-middle socio-economic suburbs. This would fall by about 15 - 20% for Wellington and 30 - 40% for Christchurch. Smaller centres will be even cheaper.

Finding furnished accommodation can be more difficult especially in Auckland at the current time and will certainly be more expensive by around 30%. Within 12 months most of our clients have bought property.

What has been happening to New Zealand house prices over the past few months?

The median property price in October 2008 for all New Zealand was NZ$379,290. In March 2011 was at $400,600 and in March 2012 stood at $408,000.

Auckland

Auckland City property values have shown an increase in value by 4.8%% in the year ending March 2012. 

Hamilton

Property values in Hamilton have climbed by a little under 1% over the past 12 months and are now $345,000.

Wellington

Wellington property values have shown no growth in the year to March 2012. The median house value in Wellington City is $440,000.

Christchurch

Property values in Christchurch have increased by 2% over the past 12 months to an average of $388,800.

Dunedin

Property values in Dunedin have increased during the past 12 months by 2.3% to $273,000.

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