Investors throughout the world are flocking to New Zealand, being attracted by the high quality and low prices of properties for sale, especially when compared to international standards. Although real estate prices of houses for sale in New Zealand have experienced exponential growth over the past decade, especially in the main centres of Auckland, Wellington and Christchurch; as well as many popular rural and coastal areas. With property values steadily rising after the effects of the global economic downturn, purchasing houses for sale in New Zealand provides a premium investment opportunity, with the potential to make significant returns. The variety of real estate opportunities allows you to diversify your investment for the better return and security purposes.
New Zealand does not require investors who sell their properties to pay capital gain taxes on their profit. This presents investors with a distinct advantage as their profit margins are not dwindled. Median house prices have risen steadily over the past decade, showing increases of 6.1% during the year ending September 2009, according to the Real Estate Institute of New Zealand.
Over the period of the housing boom in New Zealand, dating from the years 2001 to 2007, house prices experienced significant growth levels, rising 94% (66% in real terms). Demand and median house prices started to decline in year 2008, as the effects of the global economic crisis spread to New Zealand. However, effective financial management and economic stimulus packages released by the New Zealand government, resulted in a strong economy that weathered the economic downturn. New Zealand’s’ economy, and particularly its housing market, clearly benefited from effective measures implemented, with consumer confidence and property sales increasing as a result.
During the housing boom experience in New Zealand during the period extending from 2001 to 2007, the South Island registered the highest home price increase due to the strong commodity market and growth in the tourism sector. The North Island also experienced increases in property values, where many smaller cities and rural areas reached a closer parity of pricing and value with many of the larger centres. Auckland has the most expensive median pricing for house sales in New Zealand, with an average price of approximately US$336,210.
New Zealand enables investors from around the world to access properties in unique locations and areas of innate beauty; for which many could not afford in their home countries. Furthermore, with median prices of houses for sale in New Zealand being affordable in comparison to international standards, there are numerous opportunities for families to purchase their first homes and upgrade to larger examples.