New Zealand's virus success unleashes runaway housing prices

Imagine living in a country where your house appreciates in value the longer you own it! Amazing concept!

My property in New Zealand has tripled in value since I bought it. Good for me - and I will take the profit eventually, but not good for NZ's youth. I suspect once things get back to normal that many of them will be bound for Australia, London or elsewhere.

No double glazing? No central heating? It is difficult to imagine...

No double glazing? No central heating? It is difficult to imagine...

Central heating isn’t a requirement but I’m pretty sure double glazing is a requirement on all new dwellings.

This headline makes it sound as though the pandemic is the reason, but even in 2019 I was shocked seeing some of the prices. My brother’s house cost him around $200k abouta decade ago but now he’s looking at around $700k if he sells. there is huge demand now, but those selling need to make sure they have somewhere to go as well, so what might seem like a lot of money may still not be enough to get you into something else. If you’re in, stay in I reckon.

My car hasn't gone up in value, neither has my TV. But my UK house has. Even though the carpets are worn, garden fence is rotting, guttering is old, bathroom is outdated....

Zoroto.... There isn't a separation of the two in the UK.

New Zealand is attractive in many respects and like San Francisco the technorati are moving in a driving up prices.

WTH are you taking about, JT? House prices there been increasing exponentially for past 15 years at least.

This has NOTHING to do with Corona - indeed NZ doesn't have a corona problem for a start.

Try: no capital gains tax + lack of new builds going back at least 30 years and population growth.

It's crazy when even houses in less desirable neighbourhoods are increasing at up to 25% or more per annum.

Real estate bubbles eventually burst.

Victim of their own success

Watch out for lockdowns - it may be too successful

ToraToday  07:36 pm JST

WTH are you taking about, JT?

Did you not notice this?

© Copyright 2021 The Associated Press.

Tora

WTH are you taking about, JT? House prices there been increasing exponentially for past 15 years at least.

Increasing, yes, but it has really spiked in the last year.

This has NOTHING to do with Corona - indeed NZ doesn't have a corona problem for a start.

My guess is loads of Kiwis coming back home from their OE earlier than expected because of Corona.

Try: no capital gains tax + lack of new builds going back at least 30 years and population growth.

Capital gains tax won't change anything much at all. Lack of new builds is exactly the problem and also, NZ needs higher density housing. Apartments, town houses and the like.