Property · Building · Design
“Without RCR. Infrastructure, New Zealand’s nationwide lockdown, which lasted more than 1 month, would not have run so smoothly. If support services had failed, supply shortages would inevit
2020 could be described as the year property development became everyone’s business in New Zealand, with everyone wanting a share of the exceptionally buoyant subdivision market. Yet not everyone has the capability and experience of the “ideal developer”. Larger, more complex projects, in particular, require ample funding, extensive experience and well-established resources. Joining forces has therefore become a popular model: establish a company, acquire a development project and undertake the property development through the joint venture company, with each investor becoming a shareholder.
Final election results announced! Labour government sworn in On 6 November, the new government led by Labour leader Jacinda Ardern was sworn in at Government House in Wellington, New Zealand
Year-end is a time to reflect on the past and look ahead. As a link between financial institutions and businesses across all sectors, the lending industry both experienced and witnessed the turbulence of 2020. At the end of the year, YIJU interviewed York Zhang, who has spent more than a decade in the lending industry. Through Huarong’s experience, we hoped to explore how Chinese businesses in New Zealand worked together to weather the crisis of 2020 and pursue a better 2021.
Recent REINZ data shows Auckland’s median house price soared again in October, surging 16.3% from the previous year’s median of $860,000 to break through the $1,000,000 mark. It also rose 4.7% from September of the same year. As prices climb, many first-home buyers, and even some investors, can only look on wistfully: “With house prices soaring like this, can I still afford a little home with land, views and a garden, and live the life I dream of?”
After the major banks successively announced that they would voluntarily reinstate loan-to-value ratio (LVR) restrictions on investor lending, another major announcement arrived today: ANZ is lowering its LVR for property investors from 70% to 60%, effective immediately. This means buyers who are not purchasing their first home need a 40% deposit. Commercial banks have repeatedly acted ahead of the Reserve Bank, unable even to wait for its decisions. The latest REINZ monthly report makes it easy to understand why.
Australia's Gold Coast, renowned for its sunshine and surf beaches, has long been a major draw for tourists. Yet apartments there are relatively inexpensive, for a simple reason: the local housing market is largely oversupplied. So what lessons could Auckland, where house prices have recently been soaring, learn from it?
“As someone working on the technical side, I find the seminar series' theme a little like clickbait. Subdivision for everyone? Is a project requiring specialist expertise and carrying substantial risks really suitable for everyone? Don't assume subdivision and development are guaranteed to be profitable. In fact, only a small proportion succeed. Is this a golden age? It's hard to say, but the most important lesson this year's pandemic has taught me is to trust myself and not take economists at their word.”
As the pandemic eased, market demand and favourable policies sparked a boom in medium- and high-density development in New Zealand. Many investors entered the market, hoping to deliver high-quality, well-priced projects that would fill gaps in supply while generating attractive returns.
Where are New Zealand’s construction and property industries heading after the pandemic? Following Labour’s re-election, what new policies might the incoming government introduce for future urban development? And how will these measures affect the market and those working in it?
The rental market will not enter its busy season until mid-January, when people return to work and study. So, if your tenants plan to leave or you are preparing to list your property for rent, what can you do over this brief period of just over a month to add value?
The final month of 2020 has begun, and the latest reports from major property websites show that housing markets around the country continued their strong advance in November.