New Zealand Has the World's Hottest Property Market

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New Zealand Has the World's Hottest Property Market

September 13, 2016

 In what should be exciting news for those who want to sell apartments in Auckland, New Zealand online, New Zealand has emerged as the world’s hottest property market.

Prices in Auckland are now even higher than those in London – which can only be bad news for Britons who were looking to move to New Zealand following Brexit.

 According to Knight Frank’s latest global ranking of house price growth New Zealand comes second to Turkey. However, when inflation is accounted for, New Zealand comes on top.

Here’s a look at the rise in property prices in the world’s hottest housing markets so far this year...

1 Turkey 13.9%

2 New Zealand* 11.2%

3 Canada 10.0%

4 Chile 9.4%

5 Sweden 8.9%

6 Malta 8.8%

7 Austria 8.1%

8 Iceland 8.1%

9 Mexico 8.0%

10 Germany 7.9%

[Source: Knight Frank Research.]

* The figures given here are based on nominal domestic price growth. When you take real price growth into account – which means subtracting the inflation from the growth - New Zealand comes first and Turkey only 13th with a growth of just 7%.

Here’s a look at the world’s worst property markets where the growth in property prices has been the slowest....

1 Taiwan -9.4%

2 Ukraine -9.2%

3 Hong Kong -8.1%

4 Morocco -3.6%

5 Greece -2.9%

6 Singapore -2.4%

7 Cyprus -1.6%

8 Italy -1.2%

9 Brazil -0.7%

10 Japan -0.3%

[Source: Knight Frank Research.]

This is certainly good news for those who have properties for sale in Auckland, New Zealand. Canada is another country that has been doing very well indeed, witnessing an average price increase of 10% this year.

Among the countries that have suffered a slowdown, Taiwan has seen the worst decline. Here property prices have declined by 9.4%. Hong Kong and Singapore haven’t done well either.

 Auckland is the biggest city in New Zealand, with almost one-third of the nation’s population. Data shows that average hone prices in Auckland hit a record NZ$1 million (or £550,000) recently

 Indeed, an average apartment in Auckland costs NZ$1,013,632 (or £560,000) currently, an increase of 15.9% over the last 12 months. This is in fact higher than the average property price in London, which is £472,384.

 Such spiralling prices have squashed the dreams of many Britons who were planning to move to New Zealand. In fact, Immigration New Zealand has revealed a massive increased in the number of enquiries from UK nationals. Over 10,000 Britons have announced their serious interest in moving to New Zealand this year, compared to 4,599 just 12 months before.

 However, the high property prices have certainly not deterred Chinese investors, who are big buyers of apartments in Auckland as well as in other major cities such as Christchurch, Napier and Wellington.

Home prices in New Zealand are so high that the nation’s central bank has made it mandatory for investors to put down a minimum of 40% of the purchase price in cash. This measure has been taken to curb excessive speculative interest in the property market.