Property · Building · Design
Yesterday afternoon (15 November), New Zealand Deputy Prime Minister Grant Robertson announced that the Government had finally decided on a thorough and comprehensive overhaul of the long-criticised Resource Management Act (RMA), aiming to speed up resource consent approvals, build more homes faster and better protect the country's natural environment.
New Zealand house prices continue to fall, exceeding many people's expectations.
Recently, many YIJU New Zealand readers have been fortunate enough to receive a one-off resident visa. Alongside their excitement, many are also feeling deeply uncertain. With little knowledge of the property market, they do not know where to begin their first-home buying journey. Starting with this article, YIJU will answer newcomers' questions and help them achieve their dream of home ownership sooner.
On 2 November, the US raised interest rates by 75 basis points, its fourth 75-basis-point increase this year. The federal funds rate has rapidly risen from 0–0.25% at the start of the year to 3.75–4%.
Since New Zealand house prices peaked in November last year, speculation about how far they will fall in this downturn has never stopped.
Westpac New Zealand recently revealed that it needs to contact around 1000 customers each month whose mortgage terms are about to expire, warning them that their repayments could increase substantially.
According to the latest Sector Trends Report released this month by New Zealand's Ministry of Business, Innovation and Employment, construction contributed NZ$18,100,000,000 to the country's GDP last year, accounting for 6% of the economy.
Since Stats NZ released higher-than-expected inflation figures three weeks ago, commercial banks have completed another round of fixed mortgage rate rises. Fixed rates across almost all terms are now about 0.5% higher than at the beginning of last month.
OneRoof-Valocity recently released its latest New Zealand house price index report for October in the year 22. The figures show that the national average house price fell 2.7%, or NZ$28,000, over the 12 months to the end of October, bringing the average to NZ$1,009,000. This was the first annual decline in house prices since July 2011.
Lately, we have occasionally heard negative comments such as 'the townhouse market is oversupplied' and 'investors have lost interest in buying investment properties and have temporarily left the market'. Some in the construction industry, however, say that while buyer demand for new homes has fallen compared with last year and conditions are difficult, the outlook is not as bleak as some suggest.
YIJU New Zealand has recently received messages from many readers concerned about steadily rising mortgage rates. In this period of high inflation, they fear facing the harsh reality that their income will no longer cover their mortgage repayments when their rate next changes.
Recent media reports have highlighted warnings from mortgage brokers that high inflation and global economic uncertainty will expose mortgage holders who need to refix in the coming months to the risk of higher interest rates.