Property market's 'longest and deepest downturn' in 30-40 years
New Zealand's housing market is experiencing its most significant downturn in decades, with median values falling across several major cities. Investors are increasingly cautious due to rising costs and uncertainty surrounding potential tax policy changes ahead of the upcoming election.
Why it matters
The housing market downturn reflects broader economic instability and highlights how political uncertainty influences investor behavior.
New Zealand's housing market is going through the longest and deepest downturn in 30 or 40 years, property data firm Cotality says. <b>By Susan Edmonds for </b><a href="https://www.rnz.co.nz/news/business/855215/property-market-s-longest-and-deepest-downturn-in-30-or-40-years" target="_blank"><b>RNZ</b></a> It has released its latest property market data, which shows a 0.3% fall in July, after a similar drop in June. It reported a national median value of $804,303 in July, down 1% from three months ago and 0.7% lower than the same time last year. Dunedin was up 0.2% in July, Christchurch was up 0.2% but Hamilton dropped 0.2%, Wellington fell 0.5%, Auckland was down 0.6% and Tauranga 0.7%. Cotality's data has shown that first-home buyers have been a record share of the market but investor activity has been more subdued.
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