For those with the funds to do so, property is readily available at the top end of the market. These most costly properties are not seeing the same fate as the rest of the New Zealand market.
While the New Zealand housing market sees a slump due to the increasing costs of inflation, mortgage interest rates and the drop of property prices, some properties at the top of the market are selling very well.
Interest rates throughout New Zealand are at record highs, which has literally stopped many would be investors from investing here. First time homeowners are also holding back with their inability to afford a home here.
Yet those at the top end of the market are less likely to be affected because they, unlike everyone else, do not need to borrow much to make their investments happen. Therefore, they are less concerned about the high costs of buying.
As reported by the New Zealand Herald, property investor Mike McCombie had this to say. "For a lot of them it doesn't matter because they're not borrowing a lot to do it. They've got the cash – and large amounts of it."
As these investors consider this, there is new worry that the country could be in a recession. The Bank of New Zealand issued warnings of it on Friday, saying that the drop in house prices by more than 10% is a likely mark of a recession coupled with the rising of rents.
