I bought my first home in Auckland in 2000. That was a specific and favourable market situation. The vendors were overseas. The road was a main highway. The house was old and needed work. There appeared to be a break in the usual overrun of migration numbers.

What most prospective buyers missed was that the eventual move toward a Western Ring route and tunnel across Auckland would reduce traffic on this road to no end. My offer got accepted. And a week later, someone tried to buy the contract from me for $10,000.

There may be more of these types of situations in the post-corona property market, as people need to get out. And fearful prospects miss the long-run trends.

But we should also keep in mind that yields and median income levels have failed to support Auckland property prices for a long time. And without mass migration or near-full employment, very different dynamics may be at play.

In that case, stock markets could offer more upside as lockdown releases fuel earnings…


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