A mortgage insurer is this week claiming that over the coming three years, prices for property in New Zealand could increase by around 12%.

Released last week, a new report into New Zealand’s housing market has found there is a shortage of new homes available, thus leading to the ones which are available suffering huge demands and the prices are subsequently rising.

Infometrics conducted the research on behalf of the Australian mortgage insurer, QBE Lender’s Mortgage Insurance. The report also shows how the average house price in New Zealand has made its way to $356,000 – that’s an increase of over 1% in the last 12 months alone.

General Manager of Infometrics, Gareth Kiernan, believes that a low amount of building activity in Auckland has been a leading factor in the rise in house prices. He stated; “There is a definite undersupply in Auckland compared to other parts of the country…And then there’s Canterbury, where a large chunk of their housing market was knocked out by the earthquake which needs to be replaced and that will take some time too.”

Auckland prices alone are predicted to see an increase of around 16% over the next three years. Now really is the time to buy and make s good investment.

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