Hello, Chris here from Bay Islands Property. I’ve recently returned from an enlightening trip to New Zealand, and I’m eager to share my observations and insights, especially on the real estate markets in Australia and New Zealand. This journey reinforced the importance of stepping out of our usual environment and learning from others. I had the privilege of attending the New Zealand Real Estate Conference (NZREC) and caught up with remarkable real estate agents and industry leaders. It was an eye-opening experience that revealed significant differences between the Australian and New Zealand markets, particularly concerning immigration trends and their local effects.
A Learning Expedition to New Zealand
My trip to New Zealand was more than just a break; it was an opportunity to learn. The country hosted its first-ever real estate conference, organised by my good mates Kyle and Diego. The event was stellar, and it was interesting to catch up with friends and clients from both New Zealand and back home on Russell Island.
One of the standout experiences was learning from Lisa Simmons, a dynamic real estate professional in Auckland. Inspired by her quick, engaging property videos, we adopted her video approach to marketing, which dramatically improved our sales process back on the island. It’s amazing how sharing experiences with professionals from non-competing markets leads to innovative change and noteworthy success.
Market Contrasts: Australia vs. New Zealand
Perhaps the most striking differences I observed were between the Australian and New Zealand housing markets. Both countries have been facing unique sets of challenges and opportunities, influenced heavily by varying immigration patterns.
In Australia, we’re witnessing a significant population influx, with 600,000 individuals moving to the country each year. This boom is notably absent in New Zealand, where many Kiwis are returning to Australia—a component of our growing demographic figures. This influx is playing a dual role: boosting our economy while exacerbating our housing crisis. The demand for housing is robust, which leads to soaring property prices, particularly in areas with high population growth.
Conversely, New Zealand’s real estate market has struggled over the past few years, akin to other markets like Canada and the UK. Property values have been declining, partly because of the lack of comparable immigration-driven demand. However, this challenging period is expected to shift with anticipation of easing interest rates, paving the way for a revitalised market next year.
Local Market Dynamics and Trends
Turning the lens to our local market, the ripple effects of these broader economic trends are clearly visible. Our market remains strong, buoyed by a constant influx of migrants not just from Sydney and Melbourne but increasingly from Brisbane. There’s an evident trend of constructing larger, more luxurious homes as new, affluent buyers enter the scene.
We’re witnessing a remarkable increase in medium property prices. Instances of price changes are apparent, and some properties are experiencing heightened interest and competition. This dynamic usually culminates in quick sales, a challenging aspect when multiple buyers are competing for the same property.
Infrastructure developments, like the new jetties and barges, are turning islands into attractive propositions, countering the old-school perceptions of them being remote or disconnected locales. This is driving more listings, as people flock to affordable and picturesque lives, away from metropolitan hustle.
Election Impacts and Future Speculations
Elections, both state and federal, often create market inertia as buyers and sellers alike wait on the sidelines, pondering future economic scenarios. We’re on the cusp of a state election, closely followed by the U.S. election—which is garnering global attention given its high-stakes political context—and then our federal election early next year. While electoral cycles typically induce temporary slowdowns, areas like ours, which offer affordability and lifestyle appeal, remain resilient.
Brisbane buyers are particularly notable among this changing demographic. Historically dominated by Sydney and Melbourne buyers as well as Kiwis, the trend is now tilting towards Brisbane, a shift driven by digital searches presenting our location as one of the cheapest yet appealing areas to invest.
Engaging the Community and Growing Our Team
Apart from the business aspect, I take pride in our community involvement. Recently, in collaboration with Gary from Gallery 19, we sponsored an engaging local show, “Dracula,” a testament to how community events strengthen social cohesion. Sponsoring such events fosters community spirit and provides everyone from actors to spectators an enriching experience.
On the business front, our team is expanding too. With the recent addition of Olivia Renata, a strong networker from a competing firm, our dynamic team comprising Lisa, Amy, Cara, and Deb continues to flourish. We’re also on the lookout for more salespeople to support our growing clientele.
Final Thoughts: Opportunities for Buyers and Sellers
For those contemplating selling, this is a crucial time. With solid market movement and favourable environment, it’s time to leverage current conditions for optimal returns. My advice to buyers is to be well-prepared with finances and act quickly—competition is fierce, and opportunities must not be lost to decisiveness.
If you’re thinking about transitioning within this robust market—whether buying, selling, or merely understanding its dynamics—don’t hesitate to reach out. We’re here to navigate this landscape together, ensuring informed decisions and successful outcomes.
Overall, this journey underscored the invaluable lessons that come from looking beyond borders and listening to diverse perspectives. Whether it was from youthful real estate leaders of New Zealand or strategic manoeuvres of seasoned professionals, there’s always something to learn and apply. This odyssey didn’t just enhance my understanding of two similar yet unique markets, but it also reaffirmed the value of connection and innovation.
Thank you for joining me on this exploration between Australian and New Zealand markets. Together, let’s continue to learn, adapt, and grow.
