New Zealand Economy

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As Auckland’s house prices fall, the rest of NZ’s rises

By Leith van Onselen The REINZ has released its house price data for November, which revealed a 1.3% seasonally adjusted increase in the national median house price, with prices up 7.1% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 0.1% in November, with prices up 7.9% year-on-year. Looking at the major cities, Auckland’s

5

NZ Labour also seeks to end negative gearing

By Leith van Onselen In the lead up to last year’s September General Election, the NZ Labour Party pledged that it would end negative gearing if it is elected. Now, the policy is nearing implementation, with The Treasury and Inland Revenue releasing a Regulatory Impact Statement (RIS) assessing the policy. The aim of the proposed law

8

Auckland’s housing shortage worsens despite booming construction

By Leith van Onselen A week ago, Interest.co.nz published an alarming report showing how the Auckland region’s undersupply of homes has blown-out by nearly 400% in just four years – from 6944 in 2014 to 34,150 in 2018 – on the back of an insane 134,000 increase in population from net overseas migration: On Friday,

2

NZ immigration continues retrace as Aussies head home

By Leith van Onselen Statistics New Zealand released its permanent & long-term migration figures for October 2018, which revealed that immigration into New Zealand has continued to drift back from record high levels, with 61,751 annual net permanent and long-term arrivals landing in New Zealand in the year to October, down from a peak of

21

Liar Ardern’s Kiwibuild turns ‘Kiwibust’

By Leith van Onselen I’ve noted previously how the New Zealand Labour Party’s promise to “build 100,000 affordable homes across the country” is shaping up as an epic failure due to: the government changing the program from “building” to “facilitating” the delivery of 100,000 affordable dwellings, meaning that NZ taxpayers would merely ‘underwrite’ many dwellings that would have been

66

Liar Ardern breaks key election promise to cut immigration

By Leith van Onselen In the lead-up to last year’s September general election, the New Zealand Labour Party launched a plan to reduce immigration by around a third in a bid to relieve chronic housing and infrastructure pressures (especially around Auckland): …in recent years our population has been growing rapidly as record numbers of migrants

12

Ardern’s Kiwibuild affordable housing program an epic failure

By Leith van Onselen I noted previously how the New Zealand Labour Party’s promise to “build 100,000 affordable homes across the country” was already shaping up as an epic failure due to: the government changing the program from “building” to “facilitating” the delivery of 100,000 affordable dwellings, meaning that NZ taxpayers would merely ‘underwrite’ many dwellings that would have

10

NZ housing market to follow Australia’s down?

By Leith van Onselen New Zealand’s housing market looks set to follow Australia’s into a correction. According to Realestate.co.nz, Auckland’s housing market is now favouring buyers for the first time since 2011, whereas Quotable Values says that average prices are now falling: It’s a buyer’s market in Auckland for the start of summer, with the

8

Despite rising approvals, NZ’s housing shortgage worsening

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, with stronger dwelling consents still failing to keep pace with turbo-charged population growth. There were 12,945 dwelling consents issued across Auckland in the year to September (up 25%): Whereas there were 32,548 consents issued across New Zealand over the year

2

Auckland’s housing market continues to flatline

By Leith van Onselen The REINZ has released its house price data for September, which revealed a 0.4% seasonally adjusted increase in the national median house price, with prices up 5.4% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 1.1% in September, with prices up 8.5% year-on-year. Looking at the major cities, Auckland’s

7

Ardern’s Kiwibuild affordable housing program turns farce

By Leith van Onselen I noted previously how the New Zealand Labour Party’s promise to “build 100,000 affordable homes across the country” was already shaping up as an epic failure due to: the government changing the program from “building” to “facilitating” the delivery of 100,000 affordable dwellings, meaning that NZ taxpayers would merely ‘underwrite’ many dwellings that would have

2

Despite record approvals, Auckland’s dwelling shortage worsens

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, with record dwelling consents still failing to keep pace with turbo-charged population growth. There were 12,959 dwelling consents issued across Auckland in the year to July (up 26%):   Whereas there were 32,759 consents issued across New Zealand over the

2

RBNZ: Rates on hold until 2020

By Leith van Onselen The Reserve Bank of New Zealand (RBNZ) has released its latest Monetary Policy Statement, whereby it has left the cash rate unchanged at an “expansionary” 1.75% and noted that rates are likely to remain on hold until 2020: The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep

0

NZ GDP lifts, but per capita weak

By Leith van Onselen Statistics New Zealand has released national accounts figures for the June quarter of 2018, with Gross domestic product (GDP) rising by 1.0% over the quarter to be up 2.7% year-on-year. GDP per capita rose by 0.5% in the June quarter and by a soggy 0.7% year-on-year – the equal lowest per

2

Auckland house prices continue to flatline

By Leith van Onselen The REINZ has released its house price data for August, which revealed a 0.4% seasonally adjusted decline in the national median house price, with prices up 3.9% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 0.3% in August, with prices up 6.2% year-on-year. Looking at the major cities, Auckland’s

12

New Zealand’s housing shortage continues to grow

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, as dwelling consents fail miserably to keep pace with turbo-charged population growth. There were 12,845 dwelling consents issued across Auckland in the year to June (up 28%), and 32,850 consents issued across New Zealand over the year (up 8.0%): However,

3

NZ mortage growth rebounds as investors stir

By Leith van Onselen The RBNZ’s latest mortgage data shows that household and mortgage credit growth has begun to rise again after cooling recently in response to loan-to-value ratio restrictions targeting investors. After bottoming in February at 5.7%, annual New Zealand household credit growth rose to 5.8% in July: Most of New Zealand’s household debt

3

Auckland’s housing shortage an intractable mess

By Leith van Onselen Month after month MB has documented the worsening housing shortage in Auckland, where massive immigration-fuelled population growth continually overruns the supply of new dwellings. Yesterday, Auckland Council’s chief economist, David Norman, noted that even if the number of homes built in Auckland were magically increased by 20% and population growth was dropped by 25%,

2

Auckland house prices join the deflation

By Leith van Onselen The REINZ has released its house price data for July, which revealed a 0.2% seasonally adjusted monthly rise in the national median house price, with prices also up 6.6% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 0.2% in July, with prices up 8.6% year-on-year. Looking at the major

5

NZ’s population surges towards 5 million

By Leith van Onselen Statistics New Zealand has released it’s June quarter population estimates, which shows that New Zealand’s population is fast approaching 5 million people, increasing by 92,000 (1.9%) over the past year to 4.89 million: As usual, this growth has been driven by mass immigration, which added 65,000 in the year to June:

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NZ Labour to ban foreign home buyers

By Leith van Onselen Later this week, New Zealand’s Labour-led coalition Government will introduce legislation to implement the first tranche of its demand-side housing reforms, amending the Overseas Investment Act to preclude foreign buyers from purchasing residential property. From The Canberra Times: Ms Ardern’s Labour Party is adamant that a law change banning foreigners from buying

10

RBNZ goes dovish as Kiwi plummets

by Chris Becker The Reserve Bank of New Zealand (RBNZ) held its monthly interest rate meeting this morning, holding rates again at 1.75%, but substantively changed the language around their key policy guidance. From the source: The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through