The New Zealand real estate market had been widely seen and reported as an attractive proposition throughout the early 2000s, but more recently significant concerns have been raised about the performance of New Zealand property lots and the overall trend for the value of real estate in New Zealand. In this regard, it is feared and believed by many real estate observers and experts that New Zealand real estate value may continue to experience a downturn as a result of the overall economic ill-effects brought about the global economic recession.
The value of New Zealand property had for a time been expected to increase in value, after the scenic qualities of the country had been showcased and widely publicized through the vehicle of the Lord of the Rings films. As with real estate properties elsewhere in the world, however, real estate in New Zealand fell in value after the beginning of the global economic recession.
Reports issued earlier in 2010 found that indicators suggested that New Zealand property prices might continue to experience the effects of the overall economic downturn. A comparison of New Zealand real estate sales in the January of 2009 and 2010 found, for instance, that the latter period experienced a 17% fall in the real estate in New Zealand sold off.
In the six-month period of New Zealand real estate sales preceding February 2010, the market reported a fall in volume at a 31% rate. High mortgage and tax rates are believed to be contributing to the New Zealand property downturn.
