New Zealand Economy

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NZ property market experiencing “perfect storm” and “unprecedented” price gains

ANZ Research has released a new report on the New Zealand property market, which claims that a “perfect storm” has developed that has driven “unprecedented gains”: Record Breaker House prices rose 2.9% in December, following similar stellar rises in October and November. This saw a quarterly gain of 7.7% for Q4 (figure 1) – the

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Aussie property looks cheap compared to New Zealand

The housing affordability situation in New Zealand has gone from bad to worse, with new data released by the RBNZ showing that the value of New Zealand’s housing stock hit $1.28 trillion in the September 2020 quarter, up 10.7% year on year. When compared against the size of the economy – currently $321 billion –

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Jacinda Ardern hoisted on her own housing petard

New Zealand Prime Minister, Jacinda Ardern, was elected in 2017 on a platform of fixing New Zealand’s chronic housing crisis. However, Ardern’s Labour Party failed dismally on housing in its first term, failing to deliver on key election promises. Labour’s promised ‘KiwiBuild’ program to build 100,000 public houses descended into a farce, with the government

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ANZ whacks property investors

With New Zealand house prices spiraling out of control, surging 18.4% year-on-year: New Zealand’s largest home lender ANZ has dropped the hammer on property investors, requiring investors to have 40% deposits: The country’s largest home lender ANZ says from now it will require investors to have 40% deposits. This goes further than the recommendations of

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Jacinda Ardern approves Trans-Tasman travel bubble

The on again, off again Trans-Tasman travel bubble has been approved in principle by New Zealand Prime Minister Jacinda Ardern. This means Australians will be able to travel to New Zealand without quarantining in by March 2021, provided the COVID-19 situation in both countries remains as it is currently. Jacinda Ardern said a commencement date

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Tiny homes are no answer to housing crisis

On Friday, the Real Estate Institute of New Zealand (REINZ) delivered the sobering news that New Zealand house prices have surged to another all-time high following 18.4% growth year-on-year: It was also reported last week that New Zealand’s home ownership rate has fallen to its lowest level in around 70 years. The unfolding disaster has

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Runaway NZ house prices expose Jacinda Ardern’s affordability lies

New Zealand Prime Minister, Jacinda Ardern, was elected in 2017 on a platform of fixing New Zealand’s chronic housing crisis. However, Ardern’s Labour Party failed dismally on housing in its first term, failing to deliver on key election promises. Labour’s promised ‘KiwiBuild’ program to build 100,000 public houses descended into a farce, with the government

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Jacinda Ardern has failed on housing

New Zealand Prime Minister, Jacinda Ardern, was elected in 2017 on a platform of fixing New Zealand’s chronic housing crisis. However, Ardern’s Labour Party failed dismally on housing in its first term, failing to deliver on key election promises. Labour’s promised ‘KiwiBuild’ program to build 100,000 public houses descended into a farce, with the government

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Jacinda Ardern junks Trans-Tasman travel bubble

The emergence of a COVID-19 cluster in South Australia (see next chart) has persuaded New Zealand’s Prime Minister, Jacinda Ardern, to scrap the proposed Trans-Tasman travel bubble. From The Guardian: Australia and New Zealand are tackling the pandemic with slightly different strategies, leading to an impasse over a border reopening. Australia is pursuing a suppression

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Hyperinflation hits New Zealand property after RBNZ drops ball

New Zealand house prices rocketed in October to another record high, according to the REINZ: Extraordinary growth is being recorded, with the seasonally adjusted median price surging by 4.7% in October and by 20.0% year-on-year: Sales volumes have also soared, rising 25.8% year-on-year: The price rises are being driven by the top half of the

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Investors blame first home buyers for housing crisis

It’s become increasingly apparent that New Zealand is facing another housing bubble. New Zealand’s housing market has brushed off the COVID-19 pandemic, recording 2.1% value growth in the two months to October to be up 8.0% year-on-year – reaching another record high: According to CoreLogic: The support mechanisms put in place by the Government (wage

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NZ labour market shrugs off COVID-19

Statistics New Zealand has released labour force data for the September quarter, which reveals that the seasonally adjusted number of unemployed people rose by 37,000 to reach 151,000, as the impact of COVID-19 hit the labour market. It was the largest quarterly rise in unemployment since the series began in 1986: In the September 2020

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New Zealand property bubbles

The Real Estate Institute of New Zealand (REINZ) has released its house price data for September, which has reported booming sales and record high prices: As shown above, the seasonally adjusted median house price soared 14.1% year-on-year in September, with Auckland rising 11.8% year-on-year and regions outside of Auckland rising 16.3%. Sales volumes have also

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Jacinda Ardern must fix New Zealand’s housing crisis

Fairfax’s Peter Hartcher believes that housing policy is New Zealand Prime Minister Jacinda Ardern’s Achilles Heel: Ardern promised to lead a “government of transformation” and 2019 was to be “the year of delivery”. In fact, she committed a distinctly unmagical act: “She’s overpromised and undelivered,” says James. Mills, Labour’s pollster, agrees that this is fair.

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Jacinda Adern rediscovers housing crisis

When Jacinda Adern became New Zealand’s 40th Prime Minister on 19 October 2017, we were enamoured by her excellent and comprehensive election platform. Among other things, Adern promised to fix New Zealand’s chronic housing affordability problem by both addressing supply and demand distortions via negative gearing reform, banning foreign buyers of existing homes, tightening capital

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Tentative steps toward Trans-Tasman travel bubble

From Sky News: The federal government has today signed a trans-Tasman travel bubble which will allow New Zealand residents to travel to New South Wales and the Northern Territory without being required to quarantine. Deputy Prime Minister Michael McCormack announced the first step of the deal would come into effect from Friday, October 16. Under

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NZ GDP plunges an unprecedented 12.2%

Statistics New Zealand released its Q2 national accounts, with GDP plunging an unprecedented 12.2%: Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said today.

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COVID re-emergence dents Jacinda Adern’s election lead

A few months back, New Zealand’s Labour Party, headed by Prime Minister Jacinda Adern, was enjoying record high approval ratings from New Zealand voters and was staring at a stomping victory at next month’s general election. Then COVID-19 was reintroduced in mid-August via suspected failed hotel quarantine, which was met with renewed lockdowns: This has

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How Indian slaves corrupted New Zealand’s labour market

Via Stuff comes a great expose of how Indian slavery arrived in New Zealand. Over two years, a growing number of young Indian men have come forward alleging exploitation by their employer. Why does this keep happening? National Correspondent Steve Kilgallon reports. In 2016, at the height of an export education boom, 11,024 Indians came

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NZ economy comes roaring back as COVID returns

After passing 100 days without community transmission of COVID-19, and with life returning to normal (minus international travel), New Zealand consumers threw open their purse strings: “For a third consecutive month, card spending on the long-lasting goods (durables) remained at higher levels than last year, after falling sharply during April’s COVID-19 lockdown when stores were

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How New Zealand beat COVID-19

Academics from the University of Otago have written an enlightening article in The Conversation explaining how New Zealand eliminated COVID-19: On Sunday, New Zealand marked 100 days without community transmission of COVID-19. From the first known case imported into New Zealand on February 26 to the last case of community transmission detected on May 1, elimination took

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Virus elimination delivers New Zealand 4% unemployment

Eat this Australia: Labour market at a glance Unemployment rate fell to 4.0 percent. Underutilisation rate rose to 12.0 percent. Employment rate fell to 66.9 percent. Filled jobs fell 0.5 percent. Average weekly earnings (including overtime) fell 2.8 percent Wage rates increased 2.1 percent annually. Employment at a glance (seasonally adjusted) Jun 2020 quarter Quarterly change Annual change

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NZ Deputy PM: VIC quarantine “looseness” caused COVID-19 surge

With New Zealand going 75 days without community transmission of COVID-19, and having eradicated the virus, straight-talking Deputy Prime Minister Winston Peters has blamed Victoria’s “looseness” in hotel quarantine for causing Australia’s virus surge: “It’s awfully frustrating… and I feel a great deal of regret that looseness allowed this thing to get out of control

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An ode to Jacinda Adern

It is fair to say that MB has had a love hate relationship with New Zealand Prime Minister Jacinda Adern. When she became New Zealand’s 40th Prime Minister on 19 October 2017, we were enamoured by her excellent and comprehensive election platform. Among other things, Adern promised to fix New Zealand’s chronic housing affordability problem

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Magnificent Jacinda Adern drops hammer on temporary work visas

New Zealand’s Adern Government has taken the sensible step of restricting temporary visa numbers to ensure that foreign labour does not compete against unemployed New Zealanders: Both big and small companies are scrambling to hang on to their workforces, with thousands of temporary resident visas set to expire all at once…. There were about 350,000