NZ property prices decline after investor tax changes

Thursday, 13 May 2021

In March we witnessed two key reforms come into effect designed to take the steam out of New Zealand’s inflating 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 hold 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.