The Dunedin Employment market – The Otago uni is expanding through expansive building works, Dunedin won Gigatown which should have an impact on the employment rate in Dunedin and there are also a number of other companies that seem to be growing rapidly in business; overall this should impact on the employment rate in Dunedin and will have a flow-on effect on an increase of property buyers, creating a buzz around the houses on the market.
Consumer Confidence – We have a strong NZ dollar, petrol prices are on a all time low and overall consumer confidence is high. So 2015 should see more buyers moving into their first homes and more investors looking at increasing their portfolios.
Out of Town Buyers – Majority of buyers (approx. 80%) come from within Dunedin and are just upsizing downsizing etc. However I feel there is a growing trend from Auckland/Christchurch buyers looking down here due to being able to get a lot more house/land value for their money. These are families and semi-retired people(normally with some family or history with Dunedin). There also seems to be more cashed up Chinese buyers about. Once they have family living here it makes them a lot more comfortable about buying here. These Chinese buyers are also coming from Auckland.
Prices Still Relatively Low (Historic Cycle) – On average property prices generally go in cycles. High’s and Low’s. According to the stats we should be able to get the price back that you paid for your houses in 2007. This is true for some houses but I am still finding a lot of vendors are going below the price they paid in 2006/2007 (that is of course that they didn’t do any improvements). On average the house cycle is every 7-8 years so if the prices have not gone up since 2007 then we should be due for an increase soon.
Freedom’s 1.95% Commission – Halving the normal commission allows vendors to get their goal net value (in their hand price after fees) a lot easier. This decreases the sale time and allows the Dunedin market to speed up. On average you will be saving about $5,000 in commission giving you more money to buy your next home thus overall helping increase the value of Dunedin properties.