New international research has highlighted New Zealand as one of the most expensive property markets in the world on a price-to-income ratio.
Analyst company Statistica singled out Auckland as exceptionally “competitive” despite the city’s slow price decline last year. Nevertheless, it found average house sales prices of $1.2 million in North Shore City.
It noted that building consents decreased in the Auckland region in 2023, a trend since 2021. Home improvements featured heavy investments in energy-efficient technologies, such as smart heating systems and solar panels.
Most residential mortgage lending in New Zealand went to owner-occupier borrowers, followed by first-home buyers.
Statistica also highlighted that packages to assist purchasers had helped bolster prices. These included the KiwiSaver HomeStart initiative and an allowance for first-home buyers to withdraw all or part of their KiwiSaver retirement savings.
New Zealand’s market demonstrated similar traits and price-to-income ratios as Australia and Canada.
Canadian property prices are on average 19% higher than those in the United States, and Australia delivered 8.1% in value growth last year despite predictions of a downturn.
The House Price Index from the Real Estate Institute of New Zealand (REINZ) shows that average prices have increased 3.8% since June.