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COVID-19 impacts Queenstown, while NZ market activity returns to normal

Today’s QV House Price Index (HPI) figures from CoreLogic NZ have shown that COVID-19 has impacted property values to a mild degree.

Nationwide property values in New Zealand dropped 0.2%, with four of the six main centres showing declines. Interestingly, Tauranga and Christchurch increased at the same rate as the national drop, rising 0.2%.

Queenstown has long benefitted from strong international tourist trade; since the border closure, the city suffered the greatest drop in housing values in June, falling 2.1%.

The next largest drop was experienced by Dunedin, where property values decreased by 0.9%. The city had enjoyed strong year-on-year growth, mainly due to strong student activity, which has dried up since the border closure.

CoreLogic figures suggest that there is a reason to be optimistic about market activity; the report states both listings and demand to buy has “returned to a level of seasonal normality”, while consumer activity, the form of bank loan applications, approvals and valuations, suggests demand for property remains high.

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