‘FOMO’ af­fect good for strug­gling buy­ers

Auckland City Harbour News - - WHAT’S ON - SUSAN EDMUNDS

Young buy­ers want­ing to get into the Auck­land mar­ket may be about to get their chance, BNZ’s chief econ­o­mist says.

Tony Alexan­der said prices were likely to stay flat over the near term as buy­ers pulled back from chas­ing ‘‘any­thing and ev­ery­thing’’ and their fear of miss­ing out (FOMO) sub­sided.

He said young peo­ple should look for price de­clines in lower so­cioe­co­nomic ar­eas that had been heav­ily tar­geted by in­vestors.

‘‘The large sub­di­vid­able sec­tions they have pur­chased can­not be sub­di­vided and built on in the next few years de­spite the Uni­tary Plan changes be­cause ei­ther no builders are avail­able or more likely no de­vel­oper can get fi­nance.

‘‘There is no short­age of sub­di­vid­able sec­tions any longer,’’ he said.

‘‘Some of these in­vestors will get more and more ner­vous and will right now be look­ing to get rid of their pur­chase. It is in such ar­eas which young first-home buy­ers might want to start look­ing – but with­out be­ing in a hurry.

‘‘Once the first few re­ports emerge of prices eas­ing in these spe­cific lo­ca­tions FOMO will kick in with own­ers look­ing to sell be­fore prices de­cline even fur­ther. That is where I would be look­ing were I a strug­gling buyer.’’

He said buy­ers should ig­nore re­ports of a prop­erty price col­lapse. Many were fear­mon­ger­ing, he said.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.