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News: Interest in New Zealand reaches boiling point

Fri, 13 Apr 07

Interest in New Zealand from visitors to TheMoveChannel.com has really hotted up over the last month, bringing the country up from a simmering 19th position to the boil in 8th place in the Top of the Props chart.  But what’s all this heat about?

Unnoticed by many, New Zealand’s property market is quietly simmering away, as reflected by the rising interest from visitors to TheMoveChannel.com.  Last month, New Zealand occupied a respectable 19th position, but this month it’s broken into the Top 10, rising 11 slots to 8th place; the Top of the Props chart reflects the share of overall monthly enquiries to TheMoveChannel.com each country receives.

With interest in the New Zealand residential market currently boiling over, dramatic things are clearly afoot down under...

An exceptionally low tax environment

In 1984, the New Zealand government decided to court high levels of foreign investment to boost the country’s flagging economy.  As a result, New Zealand today has one of the lowest tax environments in the world with no stamp duty, no land tax, no capital gains tax, no inheritance tax and no investment tax to pay – all great news for property investors.

The country also has a high depreciation rate on buildings (4% compared to 2.5% in Australia) meaning that property owners can claim higher levels of tax deduction.

A property market coming to the boil

Property prices in New Zealand have risen 70% in 5 years but are still relatively affordable when compared to Australia, the UK, USA and Canada.  The country’s residential market is currently storming ahead and has averaged over 9% year-on-year growth between last December and March 2007.  Quotable Value, New Zealand’s largest property information company, has put this strength down to market confidence, higher than predicted immigration levels, stable interest rates and strengthening rental returns.

And it’s not just Kiwis who are getting in on the action.  Internationally, foreign demand for property in New Zealand is at an all time high.  With the New Zealand dollar currently weak against the Pound, the US dollar and the Euro, bargains and strong returns are out there for the canny investor.

Dan Johnson, Director of TheMoveChannel.com, commented: “With its stunning landscapes and enviable quality of life, New Zealand is firmly on the tourist map as well as being popular with immigrants seeking a better lifestyle.  Less well known are the exceptional investment benefits the country offers, however, including a tax regime which compares favourably to most other developed economies.  Things are starting to really hot up now and I firmly believe the New Zealand market is one to watch over the next 18 months."

Phil Jones, Managing Director of Elite Property Investments, commented: “New Zealand is a very attractive investment destination as the property cycle is currently going through a growth period.  What’s more, the New Zealand Government is actively encouraging overseas investment with low deposits, no stamp duty, no mortgage stamp duty, land tax, property purchase tax or capital gains tax to pay.”

Jones continued: “As a member of the commonwealth, New Zealand’s legal system is based on that of the UK and the property purchasing process is relatively straight forward.  New Zealand also has strong population growth due to its progressive immigration policy and rental property performs well as a result, attracting strong yields. I see New Zealand as being a major part of my own portfolio as well as those of my clients.  This market is definitely one to look out for in 2007.”

Other risers and fallers

Alongside New Zealand, the Philippines also generated a lot of interest rising 26 places to reach 19th place.

Countries which fared less well this month included Cape Verde (falling 20 places to 40th place), Sweden (down 16 to 30th) and Canada (down 10 to 33rd).

To view current opportunities in the New Zealand property market, go to www.themovechannel.com/property/new_zealand

 

Overall Enquiry Volume for March 2007

 

Rank

Country

Share

Change

Comment

1

France

12.18

Non-mover

7 months in top spot

2

Spain

9.16

Non-mover

3

Italy

7.77

Non-mover

4

Cyprus

4.27

Up 2

5

Bulgaria

3.97

Down 1

6

Turkey

3.7

Down 1

7

Portugal

3.46

Non-mover

8

New Zealand

3.17

Up 11

New to top 10!

9

Germany

2.94

Non-mover

10

UAE

2.83

Up 5

New to top 10!

11

Egypt

2.53

Down 1

12

Thailand

2.34

Up 1

13

Brazil

2.28

Down 5

14

Morocco

1.9

Down 2

15

USA

1.41

Up 1

16

India

1.03

Down 5

17

South Africa

1.02

Up 8

18

Croatia

0.99

Up 4

19

Philippines

0.98

Up 26

Highest climber

20

Romania

0.92

Down 3

21

Poland

0.87

Down 3

22

Panama

0.78

Up 2

23

Czech Republic

0.76

Up 6

24

Greece

0.74

Up 2

25

Latvia

0.57

Up 3

26

Bahamas

0.48

Up 9

27

Slovakia

0.47

Down 6

28

Hungary

0.47

Up 2

29

Malaysia

0.43

Up 7

30

Sweden

0.41

Down 16

31

Australia

0.36

Down 4

32

Sri Lanka

0.36

Up 14

33

Canada

0.36

Down 10

34

Venezuela

0.35

Up 3

35

Estonia

0.34

Down 2

36

Argentina

0.32

Up 11

37

Malta

0.28

Up 2

38

Montenegro

0.17

Down 4

39

Turks & Caicos Islands

0.16

Up 5

40

Cape Verde

0.15

Down 20

Biggest faller

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