Property Report A4 2

Other factors to consider over the next 12 months
One of the most significant events that take place in New Zealand in 2017 is the National Election. The
Election has a huge impat on the property market. Historically we have seen that three months prior to
a national election (every three years) the property market essentially stops. Listings dry up and so do
buyers. People become wary of election results, they wait to purchase property until the election takes
place and they have more certainty about their political future. The market is expected to considerably
slow down from mid June until October creating a plethora of deals for the savvy investor.
We will also see some of the new projects (new builds) under the new unitary plan in Auckland come
to fruition which will alleviate some of the pressure in the Auckland market but not enough to create a
market correction.
Pressure on Auckland services (schools, roading, etc...) will create a migration trend towards some
regional areas (mainly Waikato, Bay of Plenty, Otago). Auckland will still be the leader in growth but
failing quality of life in the big city will also see some good performance from the regional areas.
Summary
We expect growth to finally slow down in the next 12-18 months. The lead up to the national election
will have a big influence in the next 6 months but will not either cool off nor heat up the market in the
longterm, regardless of who wins. The market will remain healthy due to demand and strong migration
and economic performance. Lending should also loosen up while market conditions cool.
PROPERTY ANALYSIS