New Zealand’s capital city of Wellington is the most expensive property in the country according to a new report by real estate consultancy Repton.
The New Zealand real estate market is the biggest in the world, Repton said in a statement.
It said that it surveyed more than 3,000 property investors in New Zealand and the results showed that the average price per square metre of Wellington’s top five property types is $2.1 million, compared to $1.7 million in Hong Kong, Singapore and the United Arab Emirates.
In Wellington, the average value of a property is $5.4 million, up from $3.2 million last year, it said.
The average price of a house in Wellington is $1 million less than that in Hong, Singapore, and the UAE, it added.
“While prices in Wellington are still relatively high compared to the rest of the world in most of these areas, the capital’s affordability is a key driver of growth and growth opportunities for real estate investors.”
The property market in the city has also benefited from the “low cost” of foreign currency, Reptor said.
“The low cost of money allows investors to focus on the properties that are most likely to be developed in the future, rather than on those that are already in place,” it said in its report.
It also said the city is becoming more attractive as more property development projects are completed.
“More developers are building and more developers are being built, and Wellington is seeing some of the highest residential densities in the nation,” Repton president Peter O’Connor said.
Mr O’Conners said the low cost environment had created a “golden age” for Wellington property investment.
“New Zealand real property investors are becoming more confident in the capital and more confident that they can access the best value and the best service for their money,” he said.
He said that the capital is home to one of the best investment properties in the globe, a world-renowned Wellington hotel.
“Our survey found that investors were spending over $40 million on Wellington properties in 2019, a rise of 25 per cent from last year,” Mr O’Connors said.
In terms of the number of properties available, Wellington ranked fourth in the United States, behind Los Angeles, San Francisco and Seattle.
The city’s real estate agent, Simon McIlroy, said the high prices are partly due to the “high demand” for property in Wellington.
“I’m seeing a lot of buyers in the Wellington area,” he told the BBC.
“Some of the big property developers, like Pacific Developments, are building their properties in Wellington.”
Mr McIlry said the number and type of properties being built in the CBD was also on the rise.
“In the last two years, we’ve seen more than 600 new residential units built, a record number,” he added.
Mr McIllroy said that, despite the high demand for property, the prices in the Auckland region are lower.
“We’re seeing the value of real estate prices in Auckland increasing by around 20 per cent a year,” he explained.
“It’s not only Wellington, but all Auckland is now experiencing a real estate boom.”