As 2014 ended, sales in the New Zealand residential real estate market surged with transactions up 24.2% in December, compared with the same month in 2013.
Very strong sales growth compared to 12 months ago
According to the data from the Real Estate Institute of New Zealand (REINZ), it was the strongest December for property sales since 2006 and the second strongest December on record.
REINZ chief executive Helen O’Sullivan said: " The data for December shows very strong sales growth compared to 12 months ago and a much higher level of sales that we would normally expect for the final month of the year. The effect has been seen right across the country with a number of regions seeing further increases in sales in December after a strong November. The normal December slow down didn’t really happen in 2014 ".
Growth in New Zealand’s property market has been attributed to heavy spending by wealthy foreigners, looking to the country as a safe haven from domestic issues like civil unrest, terrorism and economic uncertainty.
Billionaire property investors have been flooding to New Zealand in the last two years, snapping up bolt-holes in the country’s most luxurious areas, attracted by its stability and distance to the world’s more turbulent regions.
Wealthy foreigners who have bought homes in New Zealand include billionaire William Foley, Russian oligarch Alexander Abramov and co-founder of PayPal, Peter Thiel. Foreign direct investment (FDI) contributes in the region of €640m to New Zealand’s economy each year.
New Zealand is an attractive destination for foreign investment capital due to having the least corrupt economy in the world and property rights, including intellectual property, are strongly protected. Over past decades, the country’s economic development has been built on principals of market openness and free trade, solidifying the country’s ranking among the world’s freest economies.
With a high standard of living, low rates of poverty, healthy levels of employment and possibly one of the most beautiful territories in the world, there is much to be positive about in terms of New Zealand’s property market.
Source:: Property show rooms