10 | New Zealand Pain & Gain Report October 2017 © Copyright 2017. CoreLogic NZ Limited (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved. Type of Owner Investors have historically experienced more loss-making sales per quarter. In the quarter ending June 2017 4.1% of Investor sales were at a loss compared to their purchase price while for owner occupiers the corresponding proportion is 3.7%. The investor trend continues to drop (from 4.5% in Q1), while owner occupier trend has slightly increased after reaching a low of 2.9% in the prior quarter. Investors remain a key group of interest for the Reserve Bank of NZ as their loans are viewed as being riskier in downturns. History suggests they were more likely to realise a loss during the Global Financial Crisis but not by a significant amount with a maximum 4% difference to owner occupiers realising losses. 2009 2011 2013 2015 2017 5% 10% 15% 20% Investor Owner Occupier The opposite to Auckland is the case in both Hamilton and Tauranga where very few investor sales were at a loss (0.5% and 0.6% respectively). Investor ‘pain’ has reduced in Christchurch, from 12% in Q1 to 8.5% in Q2, while there was an increase in the proportion of investor sales at a loss in Dunedin – up 5.4% in Q2, from 2.1% in Q1. Auckland pain is low for both groups but slightly higher for investors. Proportion of total resales at a loss