Inflation Slowing But Proving A Stubborn Beast

REINZ CEO Jen Baird said about recent inflation levels: “Inflation came in at 4%. Which is good in the fact it is down from 4.7%. At its highest point, it was 7.3% back in June 2022. So the fact that it is trending this way – is a good thing”.

Baird goes on to say about March statistics: “Listings increased substantially, up by 23.9% nationally compared with March 2023, reinforcing a trend we have seen since the beginning of 2024 with more property coming to market. New Zealand’s stock levels also saw a year-on-year increase, which means more available properties for sale and more choices for buyers. Agents are seeing activity among a range of buyer groups, with first-home buyers and owner occupiers being the most active.”

Director of City Realty Group, Daniel Horrobin says “This is reflected in our Auckland Central apartment market with TradeMe reported properties for sale now comfortably into the 600’s after dipping below 500 in December last year”.

The Reserve Bank has reported: “More people are struggling to make their mortgage repayments. A predicted increase in unemployment is expected to make matters worse.” 

Daniel reports a steady month for sales in April with auctions still a favoured method for those genuinely wanting a timely result.

“We were delighted to finish April on a high note with all four properties auctioned on the 24th selling under the hammer,” he says.

“However in the property management sector there has been extremely disappointing news,” reports Daniel.

Renters and realtors generally are upset with a government decision to scrap a bill meant to regulate property managers. They say the current state of the property management sector lacks any minimum standards or basic checks and balances to protect tenants and landlords. The bill would have established a regulatory regime for property managers, including minimum entry requirements, professional standards of practice, and a complaints and disciplinary process.

Real Estate Institute chief executive Jen Baird said the industry was “extremely disappointed” with the decision to scrap the bill. “In an industry where a modest one-person property management business can oversee assets totalling $60 million in retirement savings, it is inconceivable that such a significant sector remains unregulated,” Baird said.

“No other profession handling assets of this magnitude operates without oversight in New Zealand.”

Daniels says: “On the ground in the central city, rental activity remains steady with net immigration gains also still healthy but activity is certainly not what it was at the start of this year. We aren’t seeing the same numbers turn up to viewings and rents generally have flattened somewhat.”

“On a finishing note,” says Daniel, “back on a sales theme, we have been tracking our open home visitor numbers for some time now. We’re pleased to report that our team welcomed 239 buyers through our central open homes during April alone which is really encouraging.”