Home-owners are putting their houses on the market and tenants are handing in their notices as they ditch New Zealand in favour of cheaper property and better wages in Australia, agents have told OneRoof.
Auckland real estate agents in the north and the south of the city say a large number of people selling their homes at the moment are relocating to Adelaide, Perth, Brisbane and Melbourne.
Harcourts Glenfield agent David Ding sold three properties last month where the owners were moving across the ditch and he said there had been many more this year.
“I’ve lost count. They go to Adelaide – it's the most popular one, then Melbourne. Not many people go to Sydney. It used to be Brisbane, but Brisbane’s not as popular as Adelaide because Adelaide house prices are lower.”
Start your property search
One of Ding’s clients refused an offer on his house last year because he didn’t think it was high enough, but then took a lower price this year just so he could move to Australia.
“I think it’s the brain drain. I've seen more and more people move out of Auckland and go to Aussie.”
Tom Rawson, the co-owner of Ray White Manukau, said in the past 18 months his branch had seen dozens of clients move from Auckland to Australia.
It’s not just home-owners selling up; tenants are also handing in their notice and heading to Australia.
“When the two of those combine there’s a massive exodus out of property New Zealand,” he said.
In his patch, Brisbane was the most popular destination - especially with the Pacific Island community - followed by Perth.
“Brisbane by far is the number one but those others [Adelaide and Melbourne] have popped up.”
Not many people were moving to Sydney because house prices there were deemed to be just as expensive as Auckland, he said, adding that lower interest rates and better wages were also strong drawcards.
Kiwis are heading to cities like Melbourne for higher wages. Photo / Getty Images
“I’ve got friends in Perth and they are buying houses with swimming pools on quarter acres for $500,000. The value is incredible.”
Other clients had already made the move to Australia last year, but were only now putting their houses on the market after deciding to make it permanent.
“We are selling their properties remotely because they are already over there and loving it,” Rawson said.
He added: “We are seeing validation in people’s shift like they did it last year and they are recruiting their friends to come over as well.”
Infometrics principal economist Brad Olsen said the figures showed that in the last year more people were leaving New Zealand than those coming in and there was a general feeling that pay was higher and you got “better bang for your buck”.
“There’s definitely a strong pull towards Australia at the moment,” he said.
Infometrics principal economist Brad Olsen: “There’s definitely a feeling there’s more opportunity in Australia.” Photo / Tania White
Infometrics’ own analysis found people could earn an average of $200 to $400 a week more in Australia than New Zealand.
“We know talking to people particularly in the construction and health sectors that there’s quite a lot of competition particularly for talent there and people are looking at various opportunities.
“There’s definitely a feeling – especially probably outside some of the major inner city suburb areas - that there’s more opportunity in Australia when it comes to houses.”
However, it might not be a case of the grass being so much greener.
Australia’s housing market had also been impacted by Covid lockdowns with house prices and interest rate still increasing substantially there, Olsen said.
