The first joint report from REINZ and independent economist Alexander reveals investor appetite has not been dampened by Covid-19.
According to the report, a net 25% of agents said "they are noticing more investors in the market", up from a net 16% in May, during tighter lockdown conditions.
The study suggested the increase was driven by the hope of cut-price deals. About 60% of agents said investors were hunting for bargains, and 64% were drawn in by record-low interest rates.
REINZ and Alexander said the figure was "unsurprising considering the low level of interest rates which investors in bank deposits are currently receiving, and the hopes many undoubtedly have to purchase something more cheaply than might have been the case four months ago".
The survey also asked agents about buyers' main concerns. About half of respondents said buyers were worried about insufficient listings, while 37% said buyers are worried about getting a loan.
"Banks have become more cautious in their lending and have yet to pass through the Reserve Bank’s removal of Loan to Value Ratio regulations," the report added.
The survey also claims first home buyers are keen to capitalise on market conditions. A net 55% of agents said there were more first home buyers in the market than last month.
REINZ and Alexander said first home buyers are mindful of the nationwide listing shortage. There are roughly 19,000 properties listed for sale at the moment, compared to 58,000 heading into the Global Financial Crisis.
The report paints an upbeat outlook on the property market, despite forecasts from ANZ prices could drop by 10%-15% following the Covid-crisis.
Advisers are bullish about the prospects for the rest of the year.
"New Zealand is resilient and my gut feeling is the market will be fine," said Jeff Royle of iLender. Unlike the GFC, there's buckets of funding available. International clients have also shown a lot of interest, since lockdown we have processed 31 deals for Kiwis overseas. I don't subscribe to those who say the market will fall by 15%."
