Lock-Up-And-Leave Homes and Single-Level Properties Expected To Surge In Popularity by 2024, Predicts NZ Housing Expert

Date Published: 8 January 2024

Key Facts

• In 2024, single-level dwellings and lock-up-and-leave homes are expected to be highly popular properties, according to Bayleys head of insights, Chris Farhi.
• Turn-key homes are also gaining popularity as buyers are increasingly avoiding off-the-plan developments due to concerns about cost overruns and project completion dates.
• With the National Government promising to revoke the foreign buyer ban for high-valued properties, smart townhouses and premium apartments in Auckland and Queenstown-Lakes are likely to attract foreign investors.
• The surging demand for single-level properties is largely attributed to the growing aged population of the country.
• The plans of the National to restore mortgage interest deductibility and to reduce the bright-line test, are expected to revive investor interest and push up prices in the lower end of the market.
• Prospective buyers are predicted to focus more on completed new-builds rather than those sold off the plan due to high construction costs and a desire for borrowing certainty.
• According to Bill McKay, University of Auckland architecture lecturer, denser living conditions need to be anticipated by buyers, signalling a move away from large backyard homes.

Article Summary

Leading market expert Chris Farhi predicts that single-level dwellings and lock-up-and-leave homes will be highly in demand among property buyers in 2024. Buyers are becoming increasingly drawn to already completed new-builds or turn-key homes over properties being sold off-the-plan which present uncertainties with costs and project completion dates.

There is also a projected surge in foreign buyers interested in high-valued properties in Auckland and Queenstown-Lakes as the National Government has promised to lift the foreign buyer ban for such properties. High-end apartments are expected to be popular both for short-term rental purposes and among the country’s growing aged population looking for single-level living arrangements.

Restoration of mortgage interest deductibility and reduction of the bright-line test will likely reinvigorate investor interest, putting an upwards pressure on the prices in the lower market segment. Additionally, new-build properties are unlikely to lose their appeal with first-time home buyers and investors, particularly due to high construction costs and higher interest rates.

Furthermore, denser living conditions, as emphasised by University of Auckland architecture lecturer Bill McKay, need to be anticipated by buyers. Trends are indicating that smaller apartments might be the future, and demand for properties with large backyards is likely to lessen. The increasing diversity in New Zealand communities also suggests a higher demand for varying housing types.

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