Several strings of data suggests that the Reserve Bank of New Zealand’s (RBNZ) loan-to-value ratio (LVR) restrictions targeting investors, which were announced in July 2016, are beginning to have the desired effect of cooling Auckland’s runaway housing market.
As noted yesterday, the share of mortgages going to investors has cooled significantly since the measures were announced, falling 9% in Auckland from the 48% peak recorded in June 2016:
