New Zealand Property Priced out of Reach
Salaries are low, but property prices are notoriously high in this beautiful country. The grass may be greener in New Zealand (and we aren’t talking way of life. An abundant rainfall really makes it greener) but property is expensive.
The Demographia International Housing Affordability Survey released earlier this year indicates that Auckland’s property market is among the 10 least affordable across the globe. As things stand, it’s only slightly less expensive than London, but more expensive than New York, Los Angeles and Perth.
Latest statistics reveal that the average price of an Auckland home is over NZ$800,000 (approximately R6.7m). A one-bedroom penthouse with a study, measuring 53.4m2, will set buyers back around R4.7m.
Before you retort that it’s relative and that rand values don’t mean much these days, consider that New Zealanders themselves are finding it increasingly difficult to buy property. Salaries are low and aren’t keeping pace with house prices.
The government is concerned, implementing a number of initiatives in an effort to curb prices and boost supply, without much success. One of these includes the government’s Auckland Housing Accord. When launched in 2013, the aim was to build 39,000 new homes over a three-year period. To date, only 20 homes have been built.
The lack of available land is the main driving force behind high prices. Given that the country is small, this is probably never going to be resolved. New Zealanders will have to continue to pay top dollar for a place to live.