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Source: MIL-OSI Submissions
Source: CoreLogic

Having taken a hit from tougher LVR rules in October 2016 and then the proposals for a capital gains tax (CGT), multiple property owners with two properties (i.e. their house and a rental, or bach) have shown renewed interest in the market in the past few months – which isn’t really a surprise, given that CGT has now been scrapped. Around the main centres, this upturn has been most evident in Wellington and Christchurch.

CoreLogic Senior Property Economist Kelvin Davidson writes:

With June’s figures to hand, we now have the full set of results for Buyer Classification in the second quarter of the year, and they show a continuation of recent patterns – movers are a little less active in terms of their market share than has been typical in the past, with first home buyers (FHBs) operating at a high market share, and mortgaged investors (multiple property owners; MPOs) on a gradual rise (see the first chart).

Of course, it does need to be noted that all of these patterns in the percentage share of activity are within an overall relatively low number of purchases. Certainly, the numbers of purchases being made by movers and mortgaged investors are well down on the levels seen in 2016, and although FHBs have risen back closer to where they were in 2016, their activity has still flattened off in the past 6-9 months.

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MIL OSI