Having no cases of Covid-19 and no restrictions will bring positive change to New Zealand’s property market say real estate agents.
Ollie Wall of Graham Wall Real Estate says during the lockdown it was impossible to sell $5m properties as people won’t buy based just on what they see on Zoom.
The lockdown and border restrictions were the biggest challenges, Wall says, as there was a lot of interest from expats from London and the United States eager to come back to NZ but not being able to proceed.
“It was really frustrating because we could not do hell of a lot about it,” he says.
Start your property search
He added that the family real estate company doesn’t hold open homes, doing private viewing instead, so Level 3 restriction did not affect them as much.
“We weren’t hugely affected because every appointment we have is a one-on-one.”
But now, he says, the demand from expats wanting to purchase property in New Zealand will be even higher as word spreads that it’s one of the few countries to recover from Covid-19.
Rolling out Level 1 and having Covid-19 under control makes New Zealand is more desirable than ever, Walls says.
“A lot of Kiwis from overseas are saying ‘that’s it, we are definitely coming home’ and we’ve been busy showing properties to buyers’ parents or business associates on their behalf. They’ve got more confidence in New Zealand now because the rest of the world looks terrible in comparisons,” he says.
Real Estate Institute of New Zealand’s chief executive Bindi Norwell says industry professionals are delighted to operate as usual as the last few months have been tough.
“While just over 1,300 sales occurred during lockdown, sales volumes were down 78.5 per cent from the same time last year, which has naturally impacted real estate professional’s incomes.
“But it’s also had a wider impact on vendors and purchasers who have been caught up in delayed settlements and the resulting financial impact of those delays,” she says.
The buyers and sellers are still feeling uncertain with potential job losses and financial impacts of the global pandemic, Norwell says.
New Zealand Sotheby’s International Realty agent Charlotte Kofoed says while tough times are not over, the buyers and sellers are likely to get a wave of confidence in the market as business goes back to usual.
There are not enough listings for the buyers’ demand at the moment which is proving a problem at both ends of the price scale: demand exceeds supply for both entry-level and $4m homes.
"At the moment we have pretty low stock levels with buyers wanting to purchase and not a lot for them to choose from. Buyers are willing to wait for the right property and are not willing to compromise on what they are looking for,” Kofoed says.
The most exciting change is finally being able to meet clients and colleagues face-to-face without any social distancing restriction.
Being able to shake people’s hands or give them a hug instead of staying two meters apart all times feels great, Kofoed says.
“As much as we advertise properties digitally and in print, our industry is very much about people – connecting with them and helping them get a really good understanding of their potential home. Being able to meet with them and get to know them better makes a big difference in the ways we can assist them better,” she says.
Ray White agent Ross Hawkins says he is the busiest he's been in the last year.
He says it's catch up time now with huge buyers numbers and stock numbers lower than usual.
"We have many Kiwis staying here now that they have returned and keep returning to our clean, green, safe heaven."
