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We've touched on sort of the overall the national track, I suppose of flat to slightly down actually on house prices. Are there any standout regions that are back at bucking the trend? Yes?
Yeah, Queenstown Lakes, you always have to well treat completely differently, quite frankly different. I remember many years ago, going twenty five years ago, saying to people, Okay, I'm going to give you on the housing market, but let's just carve two islands out of all this Queenstown down there, it does its own thing, and at that time, Auckland in a city apartment market, because that would have a totally different dynamic as well. I'll probably still do that for
the moment. The Auckland in a city apartment market, it's still struggling, quite frankly, obfouely Auckland CBD. There's a rejuvenation required there and so that's going to keep things suppressed
there for a while. Queenstown Lakes, Yeah, obviously limitations on the land supply availability, and yet so many people wanting to live down there, older people looking to retire down there, people who are doing well in business, looking to reward themselves with a place down there, and of course young people are moving down with a good demand for tradespeople
and needing somewhere to live. Christ Church I have, I guess a positive view on I have for quite some time in that affordability is good and that matters are all of the time, especially more once we get the house prices rising, and also from an investor's point of view, with the new debt to income regime in place, where banks will only be able to lend where the debt for an investor is less than seven times their income or for an owner occupy six times their income, that
will be a factor flattening the house price cycle this time around. So when we get really buzzling along, it will tend to flatten it a bit there. And that will also encourage people to look outside of Auckland earlier in the cycle that would have been the case in the past, because they may not be to get a mortgage for a purchase in Auckland, and so they'll shift to looking at another center, maybe nearby or as I say, down in christ Jurge earlier than would be the case.
So there are going to be some different dynamics in the cycle this time around also just pays to keep an eye on, I guess in some locations where we're seeing some underlying economic fundamentals cause negative impacts. The fall in sheep numbers in New Zealand down to only twenty three million, whereas if you go back to about nineteen eighty four, there were some seventy six million sheep in New Zealand. And of course we see the unfortunate news out of Timaroo, a large freezing works is going to
close down. We're probably going to see more of that around the country and they will have an impact negatively
on those very specific town housing markets. And of course then with the electricity the price and feelings of security about availability going forward, causing factory closures of high importance to some small locations as well, and then maybe put an overlay of that of still retiring baby boomers they've been doing it since two thousand and eight eleven, more to come along and so that tends to be of benefit to places in the country like your Northland Bay
a plenty Waycatto Hawks Bay area. I'm still going to view there's benefit to come there from to the top of the South Island, Marlborough, Nelson and Tasman that there's some positives to come from. Auckland is shifting down there as well, so there's just a few thoughts, but regionally your things can get fairly specific. In New Zealand, investing involves the risk you might lose the money you start with. We recommend talking to a licensed financial advisor.
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