Residential Real Estate: Where is the real estate industry headed in 2023? 

Simon Short - Regional Manager, Property Brokers

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2023 marks an interesting point in the New Zealand real estate market cycle, especially compared to the previous decade.

According to Property Brokers’ regional manager, Simon Short, “We have experienced a bull market of sorts over an extended period where demand from buyers has simply outstretched the supply of listings.

“Prices across the real estate market have continued to increase quarter on quarter, year on year.”

Our growth has never been about strategy. Rather it has been about a philosophy: “If it feels right and the people who join us share common business values, then we will make it happen.”

He points out that off the back of Covid-19, where government assistance and financial aid were thrust into the economy, we now, like the rest of the world, find ourselves in an ‘over-inflated’ state.

“With interest rates now elevating, as expected, to offset inflation, I sense, like many, next year will be a year of further pricing correction and calibration.”

Simon has identified a maturity amongst sellers currently looking to sell (and leading into 2023) – they understand 2021 prices are no longer likely and therefore expect values to come back somewhat from where they have been.

He believes interest rates will have the largest bearing on buyer confidence – affordability is now a significant factor, with capital gains no longer as prevalent.

“There will be an increase in stock levels in 2023 as more homeowners come off fixed-term rates and affordability becomes a factor; For some, selling may be their only option.

“Average days to sale are extending, so we have existing stock and new stock all congesting the market at once.

“A softening of property prices is expected.

“On the other hand, buyers who have strong equity and are cash-ready will be in a strong position to negotiate, and choice in the market will be plentiful”, he predicts

Property Brokers 2023 outlook

Property Brokers has grown rapidly from humble provincial beginnings to now be New Zealand’s largest, fastest-growing regional real estate brand.

They list and sell more provincial property, be it residential, rural, lifestyle, commercial or industrial, than any other brand across heartland New Zealand and look after the largest provincial Property Management rent roll.

“Our growth has never been about strategy. Rather it has been about a philosophy: “If it feels right and the people who join us share common business values, then we will make it happen.”

The business is in a strong position to continue expanding when and if the opportunity presents itself.

“We are receiving frequent requests from real estate business owners and independent agents who identify with our family-focused, well-resourced business model. “We are an ambitious and uniquely Kiwi business, with more than 900 people from the top of the North Island to the bottom of the South. We connect heartland New Zealanders to one another simply by being in more than 90 locations.

Anticipated Bay of Plenty trends in 2023

Property Brokers now has offices across the Bay of Plenty in Whakatane, Rotorua, Te Puke, Papamoa, Tauranga, Tauriko, and Te Puna.

The company has established seven offices across the Bay of Plenty region in the last three-and-a-half years. Growth in all facets of business is strong.

“We have great people who care about adding as much value as possible for our clients.

“We are all part of the local community – schooling, sports clubs, charities and fundraising organisations – you name it, we’re into it. We do what we can when we can to give back and provide support.

“Our number one objective is giving all Bay of Plenty property owners the best service we have to offer.”
Simon believes there is a real awareness of Property Brokers across the Bay of Plenty now.

“We envisage that will continue as more people come to appreciate the strength we offer right across the nation.

“Because we are not franchised, our emphasis is always on connection and adding as much value as possible to benefit those around us.

Reflecting on 2022

“It’s certainly been a year of continued growth for us. We are proud of what the team has achieved in 2022”.

Staff numbers have grown dramatically, and Simon envisages that will continue in 2023.

“More agents are connecting with our business – they are impressed by the level of support and resource we offer our team,” he says.

Each Property Brokers agent, administrator, personal assistant, property manager, tradesperson, manager, or cadet – anyone affiliated with the Property Brokers Group – is adding value to their community daily.

“It’s been hugely rewarding for me, and the team around me, to see that what we are doing really matters.

“We are always looking ahead and asking what more we can do to continue the Property Brokers success story.”

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