Australian property investors may be turning their attention to New Zealand, Realestate.co.nz says.
The number of people based in Australia looking at New Zealand listings lifted 163 percent year-on-year that month and was up 190 percent in August.
“We expected the announcement to have a flow-on effect to New Zealand, but the scale and speed of the shift have been striking,” she said. “Australians aren’t just browsing – they’re searching, saving properties and making enquiries at levels well above what we were seeing a year ago.
“The increase we are seeing is timed with the announcement of major changes that happened in Australia in May. That may have opened up options for people to think about where they invest and one of those options would be New Zealand.”
She said the number of property inquiries was up 54.7 percent in August and the number of properties being saved by Australians was up 44.3 percent.
Wood said Auckland, Central Otago and Canterbury attracted the most attention from Australian property hunters. The exchange rate helped buyers from Australia.
“If you look at the exchange rates for people out of Australia buying in New Zealand, they are quite different to what they were five years ago. Five years ago it was almost dollar for dollar, that’s not the case now, it’s $1.24.
“They’ve got increased buying power. A strong supply of homes available, relatively flat prices and a favourable exchange rate will be of real appeal for those looking from over the ditch.
“While more competition from across the ditch might not be what every Kiwi buyer wants to hear, additional buyer interest could be welcome news for vendors.”
Sydney recorded the biggest surge in users following the tax announcement, up 121.3 percent. Brisbane and Perth grew more modestly, up 41.5 percent and 40.8 percent respectively, but their users are looking harder – recording more sessions and saved properties per person than Sydney.