Happy new year. The property market saw massive changes during last year, it is expected there is a lot of high and low in 2022 as well. No need to say high and low create opportunities for people who are in the market, ready and know what going to happen. Let’s start the first blog in 2022 with my 10 predictions for the next 12 months:
- Intrest increase: Expected 1 year fixed rate which is early 4% now reach to 5% or higher, other rates follow the same.
- Rent increase: Rent increase range moves from 1~5% annually to 5%~10% or higher to follow inflation, interest and cost government created for landlords.
- More regulation in favour of the tenant: Government continue to interfere in the property market in favour of the tenant, low-income families and first home buyers (FHBs) for example rent increase regulation or higher HHS standards.
- Property price increase slows down and in some areas decline: Price increase will be slow down and some areas may see a correction.
- Some developers bankrupted: I think most important news would be small developers may be bankrupted due to shortage of material, high labour cost, finance tightness, and property price correction.
- Fight between developer and purchaser over delays, sunset clause, defect, …: A lot of people buy or sell off the market property (new build) which we will see problems raise buyer finance to cancel or reduce or developer has material or finance problem to finish or want to execute sunset clause for its favour.
- New build oversupply: Considering consent were issued in the last 2 years and property development in progress soon or later market would be oversupply from small townhouses.
- DTI implementation in all banks and limiting mortgage: Banks will continue to get finance hard with tools they have like DTI, CCCFA, LVR, ….
- Labour and material shortage: More Kiwi will leave New Zealand which result in a labour shortage. Material delivery and logistic problems continue this year.
- Challenges and delays between government and councils about RMA change: And finally RMA changes potentially delay between some political discussion.