The price of an average home in New Zealand now ranges from NZ$750,000 to NZ$780,000.  

The limited housing supply is mainly due to the lack of investments in the construction of new housing. Investors are putting on hold any investment in construction as a result of the overall slump in the national economy. In December 2020, only 12,932 units were made available for selling, the lowest number of units for sale ever recorded, according to the Real Estate Institute of New Zealand (REINZ).  

Meanwhile, the number of new dwelling consents is almost at a stand-still, with only 3% year-on-year growth last year, a sizeable drop compared to 14% average growth over the past eight years. 

Another bit of information shared by REINZ, and supported by real estate professionals, is the fact that a large number of home buyers are first-timers. This means that the old homeowners are keeping their abode as they prefer to sit and wait. This attitude is more a reaction to the pandemic and the health and travel restrictions than anything else. When old homeowners refuse to sell, it could very well result in the absence of supply which could spell disaster to the housing sector.  

On the other hand, buyers taking an interest to invest in new, or old, real estate may also be stumped with the new law on property deposits. Based on the analysis of senior property managers, while investors may feel fortunate about the soaring prices of homes, they must not forget the higher percentage of deposit required of them. People buying homes today may have to pay up to 40 percent in deposits if this situation worsens.