See below a summary of the fundamentals within New Zealand’s ‘Golden Triangle', plus an outlook for the market.

Fundamentals

Population underpins the Golden Triangle

Auckland has New Zealand’s largest population and Tauranga is among the fastest growing cities. Hamilton’s population growth has been steady and continues to benefit from spillover from Auckland. This growth helps to underpin the performance of the property markets.

Transport infrastructure enables business

Investment into road networks is progressively improving transport connectivity between the three cities. Freight volumes are enabled by large seaports in both Auckland and Tauranga, alongside inland ports in Hamilton. This connectivity enables a range of industrial activities and other commercial activities that support the wider economy.

Fast-track projects to supercharge growth

The Government has announced a range of fast-track projects across the Golden Triangle. These include housing, land and various infrastructure projects to support growth. These projects will help drive the next cycle of development.

Outlook for the market

Interest rates’ the one to watch

The Reserve Bank has recently lowered interest rates, with further reductions anticipated over time. The immediate impact has been more enquiries from buyers and has made it easier to reach agreement on prices. That said, the market has not yet seen any substantial rise in prices.

Wider residential market starting its recovery

Independent forecasters are typically predicting house prices will rise over the next two years. Constrained housing supply will likely continue to drive long-term price growth. In the short-term, price growth has been constrained by the impact of high supply of homes on the market for sale.

Commercial property market entering recovery

Lower funding costs will translate to more demand for commercial property. Leasing activity is expected to remain robust, albeit tempered by softer economic conditions. Constrained supplies of zoned development land within the Golden Triangle will help support land prices and demand from developers.