Good job RBNZ as renewed macro-prudential bites hard

By Leith van Onselen

Property investors continue to pull back in New Zealand, with the latest data from the Reserve Bank of New Zealand (RBNZ) showing that Auckland investors have reduced their share of mortgages to 40% in October – a sharp moderation from the 48% peak share recorded in June 2016:

The slowing in investor mortgage demand follows new loan-to-value ratio (LVR) restrictions targeting investors from the RBNZ, which officially came into effect on 1 October, although banks have been informally applying the rules since they were first announced in mid-July.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.