Key Facts:

  • First-home buyers in New Zealand now represent a record share of residential property purchases, at 27% in the third quarter of this year.
  • Despite a subdued property market, the share of first-home buyers is above the long-term average of 21%.
  • This increase in share is attributed to various factors, such as using low-deposit lending speed limits, tapping into KiwiSaver for deposit assistance, and taking advantage of First Home Grants and First Home Loans.
  • In September, 2880 people withdrew savings from KiwiSaver to purchase their first home, compared to 2260 in September of the previous year.
  • First-home buyers in Wider Wellington had the largest market share at 33%, while Tauranga had 21%, Auckland, Christchurch, and Dunedin had 5% above average, and Hamilton had 6% above average.
  • The median price paid by first-home buyers decreased from $720,000 last year to $690,000 this year.
  • Standalone houses accounted for 71% of first-home purchases, while flats increased to 22%.

Article Summary:

According to new data from CoreLogic, first-home buyers in New Zealand now represent a record share of residential property purchases. Their share reached 27% in the third quarter of this year, surpassing the long-term average of 21%. Despite a subdued property market, first-home buyers are finding ways to enter the market, utilizing low-deposit lending speed limits, tapping into their KiwiSaver accounts, and taking advantage of First Home Grants and Loans.

In September, the number of people withdrawing savings from KiwiSaver to buy their first home increased to 2880, compared to 2260 in the same period the previous year. Wider Wellington had the strongest market share for first-time buyers at 33%, followed by Tauranga, Auckland, Christchurch, Dunedin, and Hamilton. The median price paid by first-home buyers this year decreased to $690,000 from $720,000.

Standalone houses accounted for 71% of first-home purchases, while flats increased to 22%. Factors such as better affordability and availability of smaller dwellings like townhouses or apartments in major centers have contributed to this shift. CoreLogic’s property economist, Kelvin Davidson, expects first-home buyers to continue holding an above-average share of property purchases in the coming months. However, he suggests that the changes in government policies and tax system for property investors might bring competition from this cohort.

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