China drop off means buyers' market in Auckland - broker

How long will the current drop-off in Chinese buyer interest in Auckland property last? Photo / NZ Herald

A window of opportunity has opened up for first home buyers in Auckland as a result of a massive decline in interest from Chinese buyers, says one mortgage broker.

John Bolton, chief executive of Squirrel Mortgages, said the Chinese market had literally stopped on a dime over the last two weeks.

Bolton said the change had been driven by restrictions introduced by the Chinese government on people taking money out of the country and investor policy changes here.

"Between the Chinese government policy and the policy here...a sledgehammer has been applied to that gopher. It has been well and truly wacked."

Bolton said the drop off in Chinese buyers had created breathing space for first home buyers.

John Bolton, managing director of Squirrel Mortgages, believes the market has moved in favour of buyers in recent weeks. Photo/Ollie Dale.

"It is creating a bit of opportunity. We are seeing some really good buys at the moment."

But he predicted it would not last long.

"I'm thinking it will be pretty slow until Chinese New Year - pretty much until February.

"Then everyone will rush in again."

Bolton said December and January were typically a quiet time of year for Chinese buyers because they were thinking about the upcoming holiday and traveling home.

"Historically it is a very slow time for them."

But after February he expected the market to heat up again.

"When everyone sits on the fence - when they rush back in again - it can cause the market to tighten up again."

Bolton said the drop in pressure meant the market had turned in favour of buyers at the moment.

"It really has turned into a buyers market at the moment just because of the speed as which the Chinese have come out of the market."