First of all, I am very pleased to have assumed the role of CEO for Zagga. I have an extensive background in executive roles within the banking and property sectors. Capitalising on this background, knowledge and networks I am looking forward to growing Zagga to the next stage, essentially through ensuring Zagga provides an exemplary customer experience.
To that end I also take responsibility should that experience be left wanting, as was the case with the initial recent move to the new platform. It is acknowledged that the experience was frustrating for some and this was communicated to us. I can assure you issues have been corrected and improvement is a continuum. Thank you for your patience and valued feedback.
Market-wise, the last couple of months have been relatively quiet in terms of investment opportunities through Zagga, a reflection of the residential property market in general. It is noted that REINZ data for July shows on average that houses took 16 days longer to sell than the same time a year ago. Nationwide sales in July were down 37% from a year earlier, consumer confidence levels were low, throw in the winter weather and poor All Black performances and you can understand why there is a bit of gloom and lack of activity.
Notwithstanding this, there are positives signs starting to show. A number of commentators are now of the view that we will not fall into a recession and that activity within the residential property market will pick up in spring.
As Tony Alexander noted in his recent report “”Some of the inflation expectations measures tracked by the Reserve Bank have edged down recently, global prices are falling for a wide range of commodities including oil, minerals, and food, and the pace of wages growth so far in the New Zealand economy is not high enough to warrant concerns about a wage-price spiral developing. There is also a wave of discounting likely to come soon from retailers quitting excess stocks.” Given this, Tony expressed the view that the Reserve Bank will possibly start cutting the OCR from most likely 4% before the end of 2023
In addition, it is noted unemployment remains at record lows and this is unlikely to change. Most industries are in fact experiencing staff shortages.
In light of the anticipated swing in confidence and improving economic indicators, I anticipate significant opportunities to be presented on the Zagga platform over coming months, so keep an eye out for updates, as we expect they’ll be funded quickly.