Westpac economists forecast that New Zealand property prices will soar by 17% in 2021 – one of the strongest rises in the nation’s history on the back of rock-bottom mortgage rates. However, prices will inevitably fall when interest rates inevitably rise and dwelling supply catches up with demand: We’re forecasting a further 17% rise in
The plan for a Trans-Tasman Travel Bubble allowing quarantine-free travel between Australia and New Zealand has hit another snag with Australia declaring New Zealand a “red zone” after new community transmissions were recorded in its largest city of Auckland. Auckland was placed into an “alert level 3” three-day hard lockdown overnight after three new community
The promised Trans-Tasman Travel bubble, which was supposed to enable unrestricted two-way travel between Australia and New Zealand, has drifted further into the never-never. New Zealand Prime Minister Jacinda Ardern yesterday put the proposal on ice in response to Australia’s knee-jerk response over a recent single community transmission in Auckland: On Tuesday in Wellington, she
The Reserve Bank of New Zealand (RBNZ) yesterday performed a stunning U-turn, reintroducing loan-to-value (LVR) mortgage restrictions just 10 months after such restrictions were lifted to aid the nation’s COVID-19 response. Under the changes, most investors will need 40% deposits and most owner-occupiers 20% deposits; although there are explicit carve-outs for new residential construction: The
New Zealand unemployment has confounded even the most bullish expectations, falling to just 4.9% in the December quarter, according to Statistics New Zealand. This compares to consensus forecasts of 5.6%: Key facts In the December 2020 quarter, compared with the September 2020 quarter: Unemployment rate fell to 4.9 percent. Underutilisation rate fell to 11.9 percent.
The Spinoff has published the below “deranged” chart on New Zealand’s housing market showing how for two decades, under both National and Labour governments, housing costs have risen far faster than wages: Labour is in a real bind here, because while 2020’s extraordinary 20% year-on-year price rise is an unmitigated disaster for anyone trying to
Via the ABC: The Federal Government is fuming after New Zealand’s Trade Minister suggested Australia could mend ties with China by showing its government more “respect.” China and Australia are mired in several disputes and Beijing has targeted multiple Australian exports with sanctions, although the campaign of economic punishment has not escalated further so far
As we know, 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,
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
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 –
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
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
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
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
Statistics New Zealand has released a new report showing that New Zealand’s home ownership rate has fallen to around the lowest level in 70-years: Homeownership at lowest rate since the 1950s Data on home ownership has been collected in census since 1916. Figure 15 shows that the proportion of households owning their own home peaked
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
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
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
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
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
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
With New Zealand’s housing market morphing into a new bubble: The Reserve Bank of New Zealand (RBNZ) is being urged to reinstate loan-to-valuation (LVR) mortgage restrictions that were lifted in May: In the ASB’s Economic Weekly ASB senior economist Jane Turner said the “RBNZ’s job just got a lot trickier than usual”. “The RBNZ needs
As expected, Jacinda Ardern’s Labour Party scored a stomping election victory over the weekend and is poised to govern outright holding a majority of 64 seats in the 120-seat parliament – a feat rarely achieved under the nation’s proportional voting system. Labour was expected to win, but not by this much. Even Jacinda Ardern was
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
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.
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
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
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.
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
Hard lockdowns across New Zealand have driven the first ever decline in annual median weekly incomes, according to Statistics New Zealand: Median weekly incomes were lower in the June 2020 quarter than they were a year ago, down 7.6 percent to $652 a week, in the wake of COVID-19, Stats NZ said today. The median
