The public is craving for information on what the property market will do as a result of COVID-19 and there is certainly plenty of commentary around it. After all homeownership in New Zealand sits at around 64% of the population (source: 2018 census data).
REINZ records show that during the Asian financial crisis of the late 90s, the volume of sales transacted decreased significantly and then steadily built back up peaking in 2004. Prices during that same period flatlined and the average price in the Bay of Plenty was around $175,000. By 2008 and the next global financial crisis, property prices had risen to an average of $350,000 in the BOP and once again flatlined through to around 2014 when again they started to rise and reached just a little under $700,000 at the time of COVID-19.
In the past two months we have seen the market recover strongly in the Bay of Plenty after falling off a cliff in April. We have seen good volumes of properties coming to the market and sale prices have remained reasonably strong. Our auction stats are comparable with the rest of New Zealand with over 50% of properties selling either before auction or on auction day and many more under contract within 48 hours.
Property is a great investment and the Bay of Plenty is a sought after place to live. We are extremely blessed.