According to CoreLogic, New Zealand property finished with an average price of $1,006,632 and record-breaking annual market growth of 27.4%:
This surpassed the previous record of 24.4% annual growth in 2003.
The breakdown of growth across jurisdictions is presented below, with Auckland, Wellington and Tauranga topping the $1 million mark:
The extreme growth has pushed New Zealand property values to a record high 4.8 times the nation’s GDP:
In response, the RBNZ has taken action to slow the market by lifting the cash rate and tightening macro-prudential mortgage controls.
Accordingly, I am expecting a price correction to take hold this year.
Whenever there is a fast run-up in prices, there is usually a correction that follows.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
- Weekend Reading: 2-3 July 2022 - July 2, 2022
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