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 last week, the value of investor mortgages taken out across Auckland in April 2017 was down 43% year-on-year, whereas the share of investor mortgages by value were down 42% in April across Auckland – a significant moderation from the 48% peak recorded in June 2016
