Demand Grows For Property Appraisal – A Window Into New Zealand’s Property Market

LJ Hooker Group, with LJ Hooker and Harveys offices across New Zealand, has seen a year-on-year uptick in property appraisals, showing a window into the future of New Zealand’s property market as property owners look to understand what they may achieve when selling.

April figures from LJ Hooker Group show that while appraisal figures remained mostly flat compared to March (down one percent), when compared to April 2023 the number of appraisals conducted was up 39 percent.

LJ Hooker Group Head of Network NZ Campbell Dunoon puts the lift in property appraisals down to an increase of interest by property owners as marketing conditions continue to get more favourable.

“LJ Hooker and Harveys offices have seen a steady number of property appraisal requests, with our network delivering 39 percent more appraisals in April 2024 than in April last year. Homeowners who want to sell have realised the market may have stabilised and while they may not be ready to list their property for sale now, they are taking that first step to understanding what their property is worth on the market,” Dunoon said.

This seller sentiment was seen in the number of new listings, with an increase year-on-year.

“Owners still see potential in this market, which is why our sales are up 15 percent year-on-year as there are buyers out there who are ready to buy. When a property is priced and marketed correctly, it can deliver results for sellers,” Dunoon said.

“Our salespeople across the country have noticed an increase in activity with more  people going through open homes and showing up at auctions, which positively impacted sales.

“Auctions have continued to represent a strong proportion of sales, with 34 percent of our April sales under the hammer. With more buyers returning to the market competition is increasing in the auction rooms, which is delivering results for property sellers.”

With changes to the bright-line property rules due on 1 July, 2024, only properties sold within two years of acquiring will be subject to the bright-line property rule.

“Currently the bright-line rules range from five to 10 years after acquiring a residential property, which means property sellers could see a hefty tax bill if they sell within this range. The IRD informs that come July that length of ownership will be reduced to two years. With this change coming, people may be hesitant about selling property outside the main family home exclusions, now knowing better conditions are just a few months away,” Dunoon said.

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