New Zealand Economy

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ANZ NZ slays Aussie economic model

By Leith van Onselen Only via New Zealand do Australia’s banks ever tell the truth. Today, ANZ chief economist, Cameron Bagrie, called for an end to “unproductive” borrowing by New Zealand households. From Interest.co.nz: In the ANZ’s latest Property Focus publication, Bagrie says New Zealand has a considerable pipeline of investment needs, which largely reflects

4

NZ ramps immigration to deal with immigration fallout

By Leith van Onselen New Zealand Prime Minister, Bill English, has ruled-out changing the country’s immigration settings to bring in more construction workers to help alleviate Auckland’s chronic housing shortage. From Interest.co.nz: The government has not seen any reason to loosen migration settings to allow for more house building in Auckland, despite the construction industry

0

Record immigration creates more pain for NZ Government

By Leith van Onselen Statistics New Zealand has released its permanent & long-term migration figures for April 2017, which revealed that annual net permanent and long-term migration into New Zealand remained near an all-time high at 71,885 people: According to Statistics New Zealand, migrant arrivals numbered 129,800 in the April 2017 year, versus departures of

8

NZ Government launches fake housing plan

By Leith van Onselen Four months out from the General Election, and with concerns over Auckland’s housing crisis growing, New Zealand’s National Government has launched a state-sponsored house building plan on crown land that is to deliver 26,000 extra homes to the Auckland region over the next decade. From Interest.co.nz: The net addition to Auckland’s

20

NZ is a property market with an economy attached

By Leith van Onselen The Property Council of New Zealand (PCNZ) has published a new report crowing that property is now New Zealand’s largest export industry. From Stuff NZ: Property is now New Zealand’s largest non-export industry, a $83 billion dollar business. A report commissioned by the Property Council found that property directly contributed $29.8b

3

RBNZ sees slowing housing market

By Leith van Onselen The Monetary Policy Statement accompanying today’s official cash rate (OCR) decision by the Reserve Bank of New Zealand (RBNZ), which saw the OCR remain at 1.75%, forecast a heavy slowing of house price growth on the back of recent macro-prudential curbs and forecast slowing population growth: Despite ongoing strength in the

1

RBNZ keeps cash rate on hold at 1.75%

By Leith van Onselen As widely expected, the Reserve Bank of New Zealand (RBNZ) has held the official cash rate (OCR) at 1.75%. The release accompanying the decision was similar to the previous statement in that RBNZ governor Graeme Wheeler noted the OCR is likely to remain accommodative for an extended period: The Reserve Bank

6

Is Auckland’s housing market rolling over?

By Leith van Onselen Several strings of data suggests that the Reserve Bank of New Zealand’s (RBNZ) loan-to-value ratio (LVR) restrictions targeting investors, which were announced in July 2016, are beginning to have the desired effect of cooling Auckland’s runaway housing market. As noted yesterday, the share of mortgages going to investors has cooled significantly

24

New Zealand First doubles down against population ponzi

By Leith van Onselen I noted last week how anti-immigration party, New Zealand First, has increased its voter support from 3% to 10.5%, according to the latest Roy Morgan polling, meaning that it could hold the balance of power and decide who forms the next government. Well, this morning New Zealand First’s leader, Winston Peters,

8

Immigration boilover builds in New Zealand election

By Leith van Onselen Hardly a day goes by now that concerns about New Zealand’s record immigration program are vented in the media, which is posing big problems for the incumbent National Government as the nation heads to the polls on 23 September. Last week, Bloomberg nicely summarised the debate: An unprecedented influx of immigrants

9

NZ Investor lending down 30% Year-on-year

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

5

Auckland’s housing shortage continues to worsen

By Leith van Onselen The New Zealand National Government’s single-minded focus on solving Auckland’s housing crisis by boosting supply continues to take a hammering. Today, Statistics New Zealand released figures showing that construction momentum has slowed across Auckland, with just 942 dwelling consents issued in March and 10,199 issued over the year: As noted by

8

Anti-immigration party to decide NZ Government?

By Leith van Onselen Who forms government in New Zealand following the 23 September General Election could be decided by anti-immigration party, New Zealand First, according to the latest polling by Roy Morgan Research: In April support for New Zealand First was up 3% to 10.5% putting Winston Peters’ party now clearly in the box

0

Record immigration creates more pain in Auckland

By Leith van Onselen Statistics New Zealand has released its permanent & long-term migration figures for March 2017, which revealed that annual net permanent and long-term migration into New Zealand hit another all-time high 71,932 people: According to Statistics New Zealand, migrant arrivals numbered 129,500 in the March 2017 year, versus departures of 57,600. Visa

23

Immigration backlash swells in New Zealand

By Leith van Onselen The New Zealand National Government’s single-minded focus on solving the nation’s housing crisis by boosting dwelling supply continues to fail. In 2016, New Zealand added a whopping 100,000 residents, more than 70% of which came from net migration: The bubble hotspot of Auckland has been the primary recipient of the population

9

NZ Government to join immigration crackdown

By Leith van Onselen The backlash against mass immigration is spreading as the politics boils over, with New Zealand’s National Government set to announce curbs to the country’s immigration program along similar lines to those announced by Australia’s Coalition Government. From Interest.co.nz: “Tweaks” to New Zealand immigration settings to be announced Wednesday will give the

7

NZ Labour schools Australian Labor on population ponzi

By Leith van Onselen With the New Zealand general election scheduled for 23 September, the Labour opposition has taken aim at New Zealand’s mass immigration program, which Labour claims is choking housing, infrastructure and public services in Auckland, as well as undercutting working conditions. From Interest.co.nz: Labour’s immigration policy will focus foremost on whether the number

2

ANZ: Auckland housing bubble “more extreme than Melbourne and Sydney”

By Leith van Onselen From ANZ CEO, Shayne Elliott, comes the admission that Auckland’s housing bubble is even more extreme that Sydney’s and Melbourne’s. From Interest.co.nz: In terms of the Auckland housing market Elliott says the city is suffering from the same issues as Sydney and Melbourne. “There are some supply challenges, there are some