25 Sep 2020

Fringe towns will soon become 'Zoom towns' - property analyst

11:37 am on 25 September 2020

Property analysts are predicting New Zealand's beach towns will soon become 'Zoom towns' as remote working and cheaper property prices attract city workers out to the coast.

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Areas outside major towns, such as the Kapiti Coast, are attracting 'Zoom workers'. Photo: 123rf

Earlier this month real estate agents on the West Coast reported a 57 percent increase in house prices as demand spiked.

QV general manager David Nagel said while New Zealand has had a lot of success in fighting the virus , many organisations are changing the way they work.

"For a lot of us, working five days in the office is a thing of the past."

It's led to people reconsidering where, and how, they live, he said.

There's strong growth in urban areas but there's also growth in fringe locations - those that are within 60-90 minute drive to the major towns.

"We're seeing this already in New Zealand."

It's both cashed-up baby boomers looking to get more bang for their buck and first home buyers who are making the move, he said.

"Generally you'll find that the further away from the major towns you are, the lower the prices, the more available property is and we're seeing a lot of people who have struggled not just to afford the prices in the big cities, but to actually to find a property that's available to them," he said.

"People just can't find a place to live, even if they have the money."

Nagel said the problem is a shortage of stock.