People are rushing into residential property because the capital gain is "fantastic", according to Massey University Property Professor Bob Hargreaves – but some may be jumping on an "irrational" bandwagon.
Monday, December 1st 2003, 7:43AM
by The Landlord
Latest Quotable Value New Zealand figures show a 17 per cent rise in house prices in the year to September – the biggest jump in 15 years.
Property prices tend to go in cycles, but Prof Hargreaves said real estate tended to "overshoot" more than business booms and busts.
"You get this irrational stuff that happens when everyone is jumping on the bandwagon, or bailing out," he said.
Asked if that was happening now, Prof Hargreaves said: "I think it probably is, though anyone in property will probably shoot me".
