- House prices continue to fall according to the latest study done by the Real Estate body
- Sales of houses are down and more houses are up for sale
- NZ housing market is now turning out to be a buyers’ market
Property prices have continued to fall through May and now 6% down since their peak. House sales are also down 28.4% as compared to last year. The supply of properties is also more. It is being forecast that the prices will fall more. While Kiwibank is forecasting that the prices will go be down by about 10 to 11% by the year end, other banks are predicting larger drops in property prices. Westpac is forecasting a 15% fall and Jarden is predicting even more.
With this reversal in property prices, the buyers can now choose a better property for themselves. It is now a buyers’ market.
Against this backdrop, let’s examine how these major property stocks are doing on the NZX.
Source: © 2022 Kalkine Media®
Property for Industry Limited (NZX:PFI)
PFI is a NZ company that deals in industrial property. Recently, it divested one of its properties in Napier. It also announced an interim dividend of 1.800 cps. The dividend will have imputed credits of 0.54 cps attached to it. The Company has also been updating its ESG report which gives details of the sustainability measures taken by it. In the latest report, it said that it had already started working on the green star certification for the future.
On 23 June, the stock was trading up 0.21% at NZ$2.37, at the time of writing.
Precinct Property New Zealand Limited(NZX:PCT)
PCT develops premium properties. Recently, in an update to the shareholders PCT revealed that it was committed to acquiring some high-quality portfolio.
The Company has been growing even during the pandemic and reported a growth of 6.3% in its net operating income to NZ$ 1 billion. It has strong cash reserves which prompted the Company to pay a dividend of 1.67 cps.
Also Read: KPG, GMT, PCT: 3 real estate stocks to watch as RBNZ to hike OCR
On 23 June, the stock was trading flat at NZ$1.33, at the time of writing.
Kiwi Property Group (NZX:KPG)
KPG deals in mixed-use property. Of late, it reported strong annual results with growth in all key metrics. In its FY22 results it reported an NPAT of NZ$224.3 million, up 14 % over pcp. Its net rental income was NZ$4 187.1 million and operating profit before tax was up 7.3% at NZ$124 million. It also announced a cash dividend of 5.60 cps for FY22, up 8.7%. The CEO of the Group, Clive Mackenzie, said the company had done well in FY22 and was entering the new financial year with significant momentum.
Related Read: RYM, KPG, VHP, NWF, ARG: 5 NZX stocks set to pay dividend in June
On 23 June, the stock was trading up 2.17% at NZ$0.970, at the time of writing.
Goodman Property Trust (NZX:GMT)
GMT is an externally managed property trust with a market cap of around NZ$2.9 billion. It one of the top investment vehicles in New Zealand. GMT financial performance for FY22 is that it made a statutory profit of NZ$763.8 million before tax, signifying a jump of 17.7% over pcp. Its operating earnings of NZ$118.3 million before tax signified an increase of 3%.
On 23 June, the stock was trading down 0.49% NZ$2.050, at the time of writing.
Bottom Line: A reduction in prices of houses and more houses up for sale are good news for house hunters. They can now choose from several options, but the sales are still showing a downward trend as new lending norms and rising mortgage rates are holding buyers back.