We’re sure you’ve noticed that the real estate markets of New Zealand have been booming recently. Especially since the last year where the market had record growth since the financial crash of 2008. That’s why the time is right to build a house.
The main reasons for this huge growth are the solid economy, a stable government, low interest rates and a huge number of property purchase inquiries. These inquiries have mostly been coming from overseas – particularly from England and America.
Ranked second in growth
Very close behind Turkey which has first place of around 14%, New Zealand ranked second in the world with a property price growth of around 11%. Canada came in at third. This was the only only other country that had a double-digit price growth of 10%.
Brexit and Trump
Inquiries from the U.S after Trump’s inauguration was seven times the normal rate compared with the same time period the year before.
From the huge increase in property demand from foreign buyers, rent prices became a lot more expensive for locals. In order to help control this, the central bank of New Zealand have upped the deposit requirement to 40% for investors.
Additional Requirements to build a house
Foreign investors are becoming more interested in purchasing “sensitive land”. This includes half-an- acre or more of waterfront property, one-acre or more of property near reserve or conservation areas, or farmland of twelve or more acres.
These buyers are now required to first get approval from the Overseas Investment Office. The application requires an explanation and demonstration of how their purchase will provide real economical benefits.
When it comes to urban land and property, there are much less requirements for approval.
Build7 Gisborne can help
As the demand continues to rise, so will the cost. If you’re currently looking at Gisborne to purchase land and then build a house as a homeowner or investor while the price is right, then we can help.
At Build7, we have a team of reputable and skilled certified designers and builders who can help you the design & build process. They can help you find the best way forward. Take a look at our Gisborne house & land packages too.