Foreign buyer rules, tightening up of anti-money laundering rules and tighter credit markets have killed off speculators. The bridge is now from residential to commercial for overseas investment, with new rules.

Developers must deliver houses that buyers can afford. That will come from intensification, with more townhouses and apartments being built.

The definition of “affordable” is the lower quartile selling price. The combination of first-time buyers with KiwiSaver is the target for KiwiBuild houses and the centre of attention for lenders. Most banks are willing to lend up to 95% of the price of a KiwiBuild home.

The “Milldale” project is the building of 9,000 new homes in Wainui, north of Auckland. If only this was combined with a scheme to buy leasehold land after five years' occupancy! You could see larger five bedroom homes being “affordable”.

More landlords are choosing to sell, meaning that affordable “do-ups” are popping up and buyers have choice of quality. Combine this with low mortgage rates and LVR, set to continue till 2020, for a boost in house sales over short term.

Geraldine Zareian MREINZ,
Barfoot & Thompson, Browns Bay Office
Free dial: 215 2773 M: 021 184 0312 E: g.zareian@barfoot.co.nz