New Zealand Economy

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NZ Labour Government targets the property speculators

By Leith van Onselen I noted in the lead-up to the New Zealand General Election, held on 23 September 2017, that Labour had an excellent housing platform that addresses both supply and demand distortions via negative gearing reform, banning foreign buyers of existing homes, tighter capital gains taxes, removal of urban growth boundaries, plus bond

4

NZ house prices are rising again despite Auckland falls

By Leith van Onselen The REINZ has released its house price data for January, which revealed a 0.7% seasonally adjusted monthly rise in the national median house price, with prices also up 7.0% year-on-year: Outside Auckland, seasonally adjusted house prices rose by 0.6% in January, with prices up 8.9% year-on-year. Looking at the major cities,

9

30,000 homes a year needed to alleviate NZ’s housing shortage

By Leith van Onselen I reported yesterday how a government-commissioned ‘stocktake’ of New Zealand’s housing market revealed that the nation faces a “deeper and more entrenched” housing crisis than previously thought, which is having “devastating impacts” particularly on homelessness. Central to the problem was that dwelling construction has fallen well short of immigration-driven population growth

9

NZ Government stocktake reveals “devastating” housing crisis

By Leith van Onselen MB has consistently argued that New Zealand’s housing market is even more diabolical than Australia’s, as evident by it being the most expensive in the Anglosphere when measured against GDP: As well as against incomes: Now, a ‘stocktake’ commissioned by the New Zealand Government has revealed that the nation faces a

2

NZ’s housing shortgage worsens despite immigration pullback

By Leith van Onselen Statistics New Zealand released its permanent & long-term migration figures for December 2017, which revealed that immigration into New Zealand has continued to drift back from record high levels, with 70,016 annual net permanent and long-term arrivals landing in New Zealand in the year to December, down from a peak of

2

Auckland dwelling consents hit 15-year high, but housing shortage worsens

By Leith van Onselen Auckland’s chronic housing shortage continues to worsen, despite dwelling consents hitting a 15-year high, according to Statistics New Zealand. There were 1,450 dwelling consents issued across Auckland in November – a 15-year high – but still only 10,731 consents issued over the year (see below charts). Whereas for New Zealand as

6

NZ Labour Government pushes ahead with foreign buyer ban

By Leith van Onselen New Zealand’s recently appointed Labour-led coalition Government will today implement the first tranche of its demand-side housing reforms, introducing into parliament legislation to amend the Overseas Investment Act to ban overseas buyers from purchasing established housing. From Interest.co.nz: … the Government says its move will ensure that house prices are set

10

Auckland house sales slump to 2010 lows

By Leith van Onselen The REINZ has released its house price data for November, which revealed a 0.2% seasonally adjusted monthly rise in the national median house price, with prices up 4.0% year-on-year: Outside Auckland, seasonally adjusted house prices rose by 0.8% in November, with prices up 8.8% year-on-year. Looking at the major cities, Auckland’s

28

Westpac: NZ immigration cut to make houses cheaper, raise wages

By Leith van Onselen Throughout the previous New Zealand National Government’s reign, it continually pinned the blame for New Zealand’s woeful housing affordability solely on a lack of supply, completely ignoring the role played by the government’s own mass immigration program: On Friday, Westpac released a research note, entitled “They came, they saw, they’re leaving”,

18

NZ housing minster lays out reform masterpiece

By Leith van Onselen I noted in the lead-up to the New Zealand General Election, held on 23 September, that Labour had an excellent housing platform that addresses both supply and demand distortions via negative gearing reform, banning foreign buyers of existing homes, tighter capital gains taxes, removal of urban growth boundaries, plus bond financing

1

Auckland’s housing shortage continues to worsen

By Leith van Onselen Auckland’s chronic housing shortage continues to worsen, according to new data released this morning by Statistics New Zealand, which shows that dwelling consents continue to fall well short of immigration-fueled population growth. There were 1,034 dwelling consents issued across Auckland in October and only 10,469 consents issued over the year (trend

8

NZ Finance Minister two-faced on housing affordability

By Leith van Onselen After the Reserve Bank of New Zealand (RBNZ) prematurely decided to ease its successful mortgage LVR restrictions yesterday, New Zealand’s new finance minister, Grant Robertson, has claimed that he wants to simultaneously improve housing affordability while ensuring that home values continue to rise by 2%-3% a year. From NewsHub: “What we’ve

5

After success, RBNZ to ease investor LVR restrictions

By Leith van Onselen The RBNZ has released several pieces of data suggesting that the RBNZ’s recent loan-to-value ratio restrictions have been successful in cooling mortgage demand amid record population growth. As shown in the next chart, New Zealand household borrowing continued to retrace sharply, recording annual growth of 6.5% in September: Most of New

13

Meet NZ’s newest housing idiot

By Leith van Onselen Apparently Auckland’s housing market is no longer in “crisis”, according to the National opposition’s housing spokesman, Michael Woodhouse: National’s housing spokesman Michael Woodhouse says flatlining property prices in Auckland prove there is no housing crisis. Sale prices in Auckland have stagnated in the last few months, after years of double-digit growth…

1

RBNZ LVR restrictions shifts demand from speculators to FHBs

By Leith van Onselen Data released by the Reserve Bank of New Zealand (RBNZ) yesterday 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

8

NZ’s new housing minister outlines widespread housing reforms

By Leith van Onselen I noted in the lead-up to the New Zealand General Election, held on 23 September, that Labour had an excellent housing platform that addresses both supply and demand distortions via negative gearing reform, banning foreign buyers of existing homes, tighter capital gains taxes, removal of urban growth boundaries, plus bond financing

3

New Zealanders’ spending outpacing their income

By Leith van Onselen Last month, Statistics New Zealand released its Household Living Costs Price Indexes, which revealed that low-income households’ costs have been growing at a much faster rate than high-income households: Today, Statistics New Zealand has released annual national accounts data, which shows that Kiwi households continue to outspend their incomes: Household net

4

NZ house price expectations capitulate

By Leith van Onselen The New Zealand Labour-led Government’s promise to rein-in the country’s housing market via a combination of demand and supply-side reforms is already bearing fruit, with the Reserve Bank of New Zealand’s (RBNZ) Household Inflation expectations survey reporting a significant slowing in house price expectations over the next year (see right columns

7

Auckland house prices fall 3.2% year-on-year

By Leith van Onselen The REINZ has released its house price data for October, which revealed a 1.2% seasonally adjusted monthly rise in the national median house price, with prices up 3.3% year-on-year: Outside Auckland, seasonally adjusted house prices rose by 0.9% in October, with prices up 8.5% year-on-year. Looking at the major cities, Auckland’s