NZ housing reforms knock wind out of market

Monday 12 April 2021

Over the past month we have witnessed two fundamental reforms to New Zealand’s property market.

First, the Reserve Bank of New Zealand (RBNZ) reintroduced loan-to-value ratio (LVR) mortgage restrictions, which from 1 March 2021 required both investors and owner-occupiers to stump-up bigger deposits:

Second, and more importantly, the New Zealand Government on 23 March announced major property tax reforms targeted at investors, specifically:

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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.