New Zealand's residential property market has shown a $12 billion, or almost 25 per cent, increase in overall spend in the past 11 months.
According to the latest data from the Real Estate Institute of New Zealand (REINZ), overall spend went up from $48.7 billion for the 11 months ending November 2019, compared $60.8 billion for the 11 months ending November 2020.
In Auckland, the figures are even more vast.
The market increased over 40 per cent, from $20.8 billion to $29.2 billion for the same period.
REINZ chief executive Bindi Norwell said the results were impacted by several changes the past year, including Covid-19 alert levels and lockdowns, no international travel, the Reserve Bank’s decision to remove LVR restrictions for a 12-month period, low interest rates, more first home buyers and a sense of a "fear of missing out".
"This year has been an interesting one for the real estate industry. We’ve seen record median prices reached in many parts of the country, with November itself seeing 11 new regional records – the likes of which we haven’t seen since October 2003 when the market was seeing significant increases in house prices," Norwell added.
"We are expecting 2021 to see ongoing regional growth as workplaces become more flexible, remote work continues and New Zealanders settle into the ‘new normal’.
"This year has certainly highlighted further that we need a consolidated industry and government response to help address housing unaffordability across New Zealand."
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