25-03-2024, 12:50 PM
I think the issue is magnified when residents of a city/region/country that has high property prices migrate into somewhere cheaper. The property buyers in these situations tend to have higher wealth levels for reasons including existing property equity, income levels or favourable exchange rates which can tend to produce distortions in the market they're buying into as their spending power is greater than the existing residents.
I've seen this situation occur frequently in situations such as Londoners inflating more remote locations' prices, Brits doing the same as they purchase properties in rural areas of European countries, immigrants to NZ using the strength of their offshore currency to buy what them is cheap property in NZ priced in NZD or even just Aucklanders moving into our provincial areas as 'work from home' and other factors work to their favour.
I've seen this situation occur frequently in situations such as Londoners inflating more remote locations' prices, Brits doing the same as they purchase properties in rural areas of European countries, immigrants to NZ using the strength of their offshore currency to buy what them is cheap property in NZ priced in NZD or even just Aucklanders moving into our provincial areas as 'work from home' and other factors work to their favour.