New Zealand Housing

By international standards housing in New Zealand is affordable. There are significant regional differences in house prices however these are best illustrated by the table at the bottom of this page.

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 although across all of New Zealand house prices have increased by an average of 40% in recent years. The heat now however is coming off the market with lower rates of inward migration and (by our standards) high interest rates. Prices appear to have plateaued if actually falling.

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. At the present time interest rates vary from 8% - 10.5% 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 $85,000 to $8.5 million dollars. The Auckland region median house price in November 2009 was just over $500,000 but has since fallen to the high $400 thousands, Wellington $400,000, Christchurch $320,000 and Dunedin $190,000. 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 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 t 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. By October 2009 it was 355,000. In March 2011 it stands at $400,600.

In the year ending March 2011 this represents a fall of about 2% over the same period a year earlier. Prices are expected to remain somewhat volatile.

Auckland

Auckland City property values have shown a decline in value by 1% in the yer ending March 2011. This trend across the wider Auckland area is consistent with the national picture with almost all areas showing a drop in the residential price movement..

Hamilton

Property values in Hamilton have also decreased by cloe to 4% during the past 12 months. The average sales price was around $300,000.

Residential property managers are also reporting that it is becoming more difficult to rent properties (particularly one and two bedroom properties) and in some instances landlords are being forced to reduce rentals in order to attract and retain tenants.

Wellington

Wellington property values have shown negative growth of around 2.9% in the year to March 2011. The median house value in Wellington City is $449,000

Christchurch

Property values in Christchurch have not been recorded since the earthquakes of September 2010 and February 2011. 

Dunedin

Property values in Dunedin have fallen during the past 12 months by close to 4%.

For more information see our useful links on the top right of this page.