RBNZ dissects Auckland’s investor bubble

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By Leith van Onselen

Reserve Bank of New Zealand (RBNZ) analyst, Hayden Skilling, has published an analytical note examining recent housing market trends, which highlights the growing influence of investors in pushing-up Auckland house prices, as well as the impact of RBNZ’s 10% speed limit on high loan-to-value ratio (LVR) lending, which was implemented in October 2013.

The [LVR] policy had an immediate dampening effect on housing market activity and house price inflation, and facilitated a strengthening in bank balance sheets. However, since late 2014, upward pressure on the housing market has re-emerged, predominantly in Auckland, posing renewed risks to financial stability.

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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.