11-05-2012
No ‘boom' but investor activity on the up, survey reveals
Landlords.co.nz
Estate agents are reporting an increasing number of investors' active in the property market, according to the latest BNZ-REINZ survey.
The survey quizzes licensed estate agents about the state of the property market and found that nationwide, just over 19% of agents have reported investors' buying property.
"This is a significant development not so much for the small increase from 15% in our April survey but because this makes four months in a row of agents reporting more investors," the report said.
Investor activity was especially pronounced in Hamilton, where 43.8% of agents' reported investors' buying, followed by Manukau City (42.1%) and Dunedin City/Otago (40%).
The survey also found an increase in the net percentage of agents' reporting first-time buyers' activity and a fall in the number of requests for written appraisals.
"The result of these changes is a surge to a record net 64% of licensed agents reporting that dwelling prices are rising," the report said.
"The April result for this measure was just 25% and in May last year a net 7% reported that prices were falling."
The report states that while clear evidence points to a rising house prices the market remains balanced with an absence of panic buying.
"Prices are increasing, but again we reiterate - as the Reserve Bank Governor did earlier this week - there is no ‘boom' underway. Just a growing level of interest from first home buyers and investors in particular and an absence of rush listings."
Source: Landlords.co.nz