Property price growth in NZ slows

Property price growth in New Zealand has slowed in recent months, and it is now the smaller towns which are driving the minimal national gains.

The latest data released by property valuer QV reveals that the average New Zealand property price rose by just 1.6 per cent in the three months to July, taking it to NZ$641,280.

In terms of annual growth, nationwide residential property prices were up by 6.4 per cent in July compared to the same month last year – yet this is the slowest annual price rise recorded since February 2015.

One main reason for the national slowdown is a deceleration in Auckland property price growth. In the Auckland region, the price rise was 5.3 per cent year on year – the slowest annual rate since May 2012. However, the average property price in the region is still an eye-watering NZ$1,044,303.

Growth was also slow in the major cities of Christchurch, Hamilton and Dunedin, while rising property values in Wellington are also starting to slow.

Instead, it is more regional cities like Hastings, (up 20 per cent), Napier (18.4 per cent), and Rotorua (17.8 per cent) which are propping up the growth.

With property prices in some regions of New Zealand reaching all-time highs, it is essential that anyone moving to the country starts their new life with the largest amount of NZ Dollars they can.

One simple way you can make a substantial financial gain is to get the best exchange rate possible when the time comes to change Pounds into NZ Dollars.

Put simply, when exchanging large lump sums, only small fluctuations in exchange rates can have a huge impact on how much money you’ll end up with.

For example, imagine you managed to sell your property in the UK three months ago, and had £150,000 to spend. If you had exchanged immediately, then on 15th May you would have received NZ$1.878 for every £1 exchanged – making a total of NZ$281,700. However, if you had waited to exchange, just to see if the rate would be more favourable, than so far you would still be waiting for an upward move. As of yesterday, the rate had fallen to £1=NZ$1.788 – an amount that would net you more than NZ$13,000 less than you would have received three months ago.

Of course, there is no guarantee of choosing the absolute best time to exchange. But taking expert advice from a specialist currency exchange firm like Halo Financial can certainly help.

Foreign exchange companies understand why the exchange rates are moving and just what impact this has on your currency transaction so can give you at least some indication of when the market could move favourably. What’s more, they can also provide you with a range of options on when you should consider exchanging, and how much you should exchange at a time.

To find out how you can make sure you can take advantage of positive fluctuations in the market and exchange your currency at the right time to get the best possible, visit www.halofinancial.com

Article published 8th August 2017