Survey: Buying in the Housing Boom

BUYING IN THE HOUSING BOOM

• Half a million New Zealanders plan to buy or sell a property in the next 12 months

• Buyers expect to pay an average of $524,671 for a property

• Trade Me Property has highest overall brand rating in the market

28 SEPTEMBER 2016: A new report released by Nielsen, a global information and measurement company, has found that nearly half a million New Zealanders (484,000) are planning to purchase, sell the property they live in, or sell another property (e.g. investment/holiday home) within the next 12 months.

Almost all the people in the New Zealand property market are buyers (95%), with a high proportion of this group (38%) being first time home buyers (up from 34% in 2015). Over three quarters of market buyers are looking to purchase their primary residence (77%). Seventeen percent are buying for investment purposes –down from 19% in 2015. (see chart 1).

Buyers expect to pay an average of $524,671 for a property; the expected price has increased by 3% compared to last year.

Tony Boyte, Research Director at Nielsen said, “With interest rates currently at an all-time low, continued migration increases and a housing shortage (especially in Auckland); the demand for property is still pushing up house prices, albeit at a more measured pace.”

Using a real estate agency is the preferred method of buying property; however this has dropped three percentage points to 44% in the last year. A quarter (24%) plan to purchase privately and the same number are yet to decide.

Trade Me Property has the highest overall brand rating in the real estate market, followed by Realestate.co.nz. The highest rated agency is Harcourts. (see chart 2)

When it comes to researching their dream home, more than four in five (82%) look to find information online.

Boyte continues, “Online research is supplemented with up to four additional resources to support the buying process. Real estate magazines, ‘For Sale’ signs, brochures and agency window displays, still have an important role to play in helping consumers gather up the relevant information, find the right property and close the deal.“

More than one in two property buyers do not currently have a mortgage. Of those who do have a mortgage, ANZ bank is the most popular holding a 15% share of the market. Twelve percent of people in the property market say they are likely to change mortgage provider in the next 12 months.

Boyte adds, “There’s an opportunity for those involved in the home loans market to attract those buyers looking for a mortgage and also those not entirely satisfied with their current provider.”

Chart 1

Chart 2

About the New Zealand Real Estate Report 2016

The online survey was conducted August 2–14, 2016, and polled 1,200 New Zealanders researching property. The total sample size has a margin of error +- 2.9%.

About Nielsen

Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the world's population. For more information, visit www.nielsen.com.

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