Jacinda Ardern was partly elected to address house price inflation. Instead, her first term delivered spiraling prices. Fed up, this year the Ardern Government has dropped a series of draconian measures on property markets including:
- Adding house prices to the RBNZ mandate.
- Negative gearing and deductibility of mortgage costs against property investments will be phased out.
- Capital gains tax exemptions will apply to properties held more than ten years.
- None of this is grandfathered.
Goldman is out today with an assessment of price impacts:
