New Zealand Economy


Former NZ PM becomes banker

Work for Merrill Lynch. Become PM. Do nothing about house prices. Ramp immigration. Sell your mansion to a Chinese investor. Then join the bank: ANZ has appointed former New Zealand Prime Minister John Key as chairman of ANZ New Zealand. He will succeed John Judge as chairman as he retires from the board of directors in January,


NZ house prices fall in September as volumes collapse to 6-year low

By Leith van Onselen The REINZ has released its house price data for September, which revealed a 1.3% seasonally adjusted monthly fall in the national median house price, with prices up just 0.6% year-on-year: Outside Auckland, seasonally adjusted house prices fell by 0.9% in September, with prices up 5.4% year-on-year. Looking at the major cities,


NZ Government’s “dismal failure” on Auckland housing

By Leith van Onselen I have written many times how New Zealand’s National Government has failed dismally in tackling Auckland’s housing crisis, despite promising to do so over its nine year reign. Yesterday, we received more evidence of the National Government’s failure, with its Auckland Housing Accord – designed to deliver tens-of-thousands of ‘affordable’ homes


NZ house prices begin to fall as macroprudential bites

By Leith van Onselen The evidence continues to accumulate showing that the Reserve Bank of New Zealand’s (RBNZ) recent loan-to-value ratio restrictions targeting investors has been successful in cooling mortgage demand amid record population growth. Last week, the RBNZ revealed that the share of mortgages going to investors, as well as the share of interest-only mortgages


Auckland’s housing shortage worsens

By Leith van Onselen The New Zealand National Government’s single-minded focus on solving Auckland’s housing crisis by boosting supply continues to fail. Today, Statistics New Zealand released figures showing that despite a big lift in Auckland dwelling consents in August, new supply continues to fall well short of immigration-driven demand. There were 1,184 dwelling consents


RBNZ LVR restrictions reins-in the speculators

By Leith van Onselen Data released by the Reserve Bank of New Zealand (RBNZ) revealed that property investor lending has continued to cool after the RBNZ implemented new loan-to-value ratio (LVR) restrictions targeting investors, which officially came into effect on 1 October 2016, although banks began informally applying the rules since they were first announced


NZ Kingmaker weighs-up his options

By Leith van Onselen With neither major party gaining enough votes in Saturday’s election to form government, New Zealand First’s (NZF) Winston Peters, who holds the balance of power, continues to keep the electorate and media guessing over which side he’ll back to form a minority government. As reported in yesterday, Peters outlined that


NZ votes ‘yes’ to housing ponzi economy

By Leith van Onselen In the months leading-up to Saturday’s New Zealand election, various Roy Morgan Research surveys revealed significant voter angst over housing, specifically concerns about affordability/increasing prices as well as homelessness/housing shortages. Labour went to the election with an excellent housing platform that addresses both supply and demand with negative gearing reform, banning foreign


NZ Immigration stuck at record levels

By Leith van Onselen Statistics New Zealand released its permanent & long-term migration figures for August 2017 yesterday, which revealed that annual net permanent and long-term migration into New Zealand remained near a record high 72,072 people over the year: According to Statistics New Zealand, migrant arrivals were a record high 132,200 in the August


NZ Prime Minister fails badly in housing defence

By Leith van Onselen With the New Zealand National Government’s single-minded focus on solving Auckland’s housing crisis by boosting supply failing dismally, and it facing possible election defeat as the nation hits the polls on Saturday, Prime Minister Bill English has defended the Government’s housing record. From Prime Minister Bill English has defended his


China invades NZ election

Via The Australian: The report by researcher Anne-Marie Brady, of the University of Canterbury, singled out a $100,000 donation last year by six Chinese donors who had attended a lunch with Mr English’s predecessor as prime minister, John Key, over the bid to change the New Zealand flag. Professor Brady noted the Chinese donors want


What will cutting immigration do to the NZ economy?

Via UBS today: Our economic forecasts (see NZEP 8 September) reflect our base-case scenario election outcome i.e. that the National Party will form a government with the support of NZ First (see NZEP 1 September). While there could also be potential ramifications for the economic outlook from such a coalition arrangement, the implications of a


NZ Labour schools Australian Labor on immigration

By Leith van Onselen In the lead-up to this Saturday’s New Zealand General Election, the Labour opposition has continually taken aim at New Zealand’s excessive immigration program, which Labour claims is choking housing, infrastructure and public services in Auckland, as well as undercutting working conditions. The Economist has published an interesting profile on Labour’s leader,


NZ Labour holds edge in last week before election

By Leith van Onselen In the final week before New Zealanders go to the polls this Saturday, the opposition Labour/Greens alliance holding a slight lead over the incumbent National-led coalition, according to Roy Morgan Research polling: Final Roy Morgan New Zealand Poll shows Labour/Greens (60 seats) with Maori Party support favoured to win knife-edge election


NZ house prices rose in August as volumes cratered

By Leith van Onselen The REINZ has released its house price data for August, which revealed a 1.7% seasonally adjusted monthly rise in the national median house price, with prices up 7.6% year-on-year: Outside Auckland, house prices rose by 2.9% in August, with prices up 10.5% year-on-year. Looking at the major cities, Auckland’s seasonally adjusted


NZ Election on a knife edge

By Leith van Onselen The 23 September New Zealand General Election looks set to go down to the wire. A few weeks back, the Colmar Brunton Poll showed that Labour had overtaken the National Government for the first time in a decade, running on a platform of fundamental housing reform and lower immigration: However, this


NZ Chinese-born MP embroiled in spy scandal

Via Newsroom: A National Party MP who studied at an elite Chinese spy school before moving to New Zealand has attracted the interest of our Security Intelligence Service. The list MP Jian Yang did not mention in his work or political CVs a decade he spent in the People’s Liberation Army-Air Force Engineering College or the Luoyang language institute run


Auckland real estate agent slashes commissions amid frozen market

By Leith van Onselen The most recent REINZ housing statistics revealed a sharp decline in Auckland transaction volumes, which were down circa 30% in the year to July: And are tracking at their lowest level in five years in 12-month moving average terms: Today, reports that a real estate agent has slashed their commissions