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More residential properties are being purchased by overseas buyers but they are still selling more New Zealand properties than they buy

Property / analysis
More residential properties are being purchased by overseas buyers but they are still selling more New Zealand properties than they buy

The number of homes changing hands hit a four year high in the third quarter of this year.

Statistics NZ recorded 41,484 residential property transfers in the three months ended September, which was up 14% compared to the same quarter of last year. It was also the highest number in any quarter in the last four years.

That was a strong recovery from the lockdown affected second quarter of this year, when just 26,265 residential property transfers took place, down 30% on the same period of last year.

In the 12 months to September, 140,412 residential properties changed hands, down just 2.3% from the previous 12 months, suggesting market activity has almost fully rebounded from the effects of the COVID-19 lockdowns.

There was also an increase in the number of residential properties being purchased by overseas buyers.

That increased from 102 in the June quarter to 240 in the September quarter, which was up 29% compared to the September quarter last year.

However that figure may only be the tip of the iceberg, because Statistics NZ only records sales to overseas persons when they purchase a property in their own name.

Properties purchased through a company structure or trust (where at least one trustee is a NZ resident or citizen) are not counted as sales to overseas persons, even if the person ultimately controlling the company or trust is a non-New Zealand resident or citizen.

The figures also show that non-New Zealanders continue to be net sellers of New Zealand residential property.

Although 240 overseas persons purchased residential properties in the September quarter, 369 properties owned by overseas persons were sold, which was up 19% on the September quarter of last year.

The number of residential properties being sold by overseas owners has exceeded the number being purchased by overseas owners since the March quarter of last year.

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