As the new housing measure has been implemented in 2015, Auckland's house prices have drop sharply. Despite the current real estate market condition, it has been predicted that there will be a massive influx of capital this 2016.
New Zealand Herald reports that Ron Hoy Fong, a specialist in Auckland properties that has connections in China forecasts a large influx of investors in the real estate market in New Zealand for 2016. This is in contrast to the financial breakdown experienced in China. Not to mention the auction clearance rates dropping a whopping 70% and in some cases 30% which started in the 1st of October. The drops was caused by the requirement of foreign buyers to have a NZ Inland Revenue number and a NZ bank account. Mr. Fong runs a coaching business Ronovationz from Mt. Roskill and currently owns 30 properties in Auckland.
He actually uses the words "going to go bananas" of his calculations on possible Chinese investors that may invest in May. Other than that he has encouraged his 450-student client base to invest as well before the Chinese do.
Stuff.co.nz adds more about the drop of house prices in Auckland. Bank economists were surprised of the abrupt changes and the drop of interest rates. A survey done by ASB on 2000 people showed that 54% of the respondents are anticipating the rise in real estate prices for this year while ten per cent of which expect otherwise.
Because of the changes in the market, Auckland became the 5th least affordable market internationally with home prices rising at 9.7 times more ($748,700) than the average household income of $77, 500. Nick Tuffley, chief economist for ASB says that the prices for homes in Auckland are most likely to remain the same until such time that the "impact of last year's new housing measures are better known."
Still the results remain to be seen if the speculations of specialists and the results of the survey will indeed come to pass.
What do you think about the results of the implementations of the new housing regulations and government regulations in New Zealand?
