Yes, ladies and Gentlemen, it’s official. Auckland step aside you have had your Boom, now it’s the rest of New Zealand’s turn. And I can tell you the provinces are wasting no time in getting their own share of Capital gains.
After sitting idle on the sideline and watching Auckland take the limelight for the last four years with hefty margins in capital growth. The provincial real estate markets have kick-started into gear creating a buying frenzy in just about every town up and down New Zealand.
After forecasting this exact thing to happen in two previous blogs;
- Record Migration will fuel Property Market ( 17 / 3 /2015)
- NZ Property Market on the way up (7 / 7 /2015)
Real estate agents around the country are searching for listings as they have more buyers than properties to sell. A lot more buyers! And properties that are on the market are attracting multiple offers and selling within weeks of being listed. Agents are taking advantage of this situation and are now adopting Auctions and Tenders to get the buyers competing against themselves and extracting the highest price they can on the day.
While the masses have been fighting each other for overpriced low yielding property in Auckland, the smart investors have been tiptoeing around buying up fantastic deals in the quiet provinces. These are deals they have got cheap due to not a lot of competition from buyers, and have very big yields.
Don’t think you have missed the boat, there are still plenty of great deals around and always will be. It’s just a case of having the education and skills to identify them.
Just a word of warning to Auckland investors. The Auckland market is peaking out after 4 years of gangbuster gains. DON’T think the gains will go on forever, no matter what anyone says. This WON’T happen, and every market will stop at some stage for a breather and possibly a, recheck of prices. Believe me I have seen it many times.