New Zealand Economy

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Kiwi services economy leaps over Aussie

by Chris Becker More evidence this morning that the NZ economy has a little more robustness post-mining boom with its performance of services index (PSI) print for November released this morning, expanding again: It paints a stark picture compared to that of the latest Australian PSI in November, which printed at 43.8 and is still in

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RBNZ hawks-up as house prices rebound

By Leith van Onselen The Real Estate Institute of New Zealand (REINZ) has released its November house price results, which registered a strong monthly rise in values and an acceleration in annual growth. In the month of November, the national stratified median price rose by 3.3% to nearly $464,000. Prices rose by 2.5% in Auckland,

3

Aussies flee to New Zealand

By Leith van Onselen Statistics New Zealand has today released its permanent & long-term migration figures, which revealed that New Zealand net migration is at record highs, with net migration from Australia to New Zealand also at the highest level in 21 years: Seasonally adjusted permanent and long-term (PLT) migration figures showed a net gain

2

RBNZ to retain macroprudential controls

By Leith van Onselen The Reserve Bank of New Zealand (RBNZ) has released its bi-annual Financial Stability Report (FSR), which notes that its macro-prudential caps on high loan-to-value ration (LVR) mortgage lending will remain for the foreseeable future: “The financial system faces the same key risks that the financial system faced at the time of

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The New Zealand housing nightmare

By Leith van Onselen Above is an interesting video presentation from New Zealander, Andrew Atkin, who runs the blog “Building Utopia”. In the video, Aitken provides a step-by-step analysis of why housing affordability has been destroyed in New Zealand, with particular focus on supply-side barriers that have forced-up the cost of building new homes. It’s

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New Zealand seeks to avoid “generation rent”

By Wendell Cox, reproduced with permission from New Geography: The political leadership and others in New Zealand are talking about the consequences of its land use policies. Under the “urban containment” land use policy (also called by terms like “smart growth,” “growth management,” and “livability”) in effect in every urban area, house prices have doubled

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RBNZ shows Australia the way

By Leith van Onselen The Reserve Bank of New Zealand (RBNZ) conducted its Official Cash Rate (OCR) review this morning, which left the official interest rate at 3.5% as expected. However, RBNZ Governor, Graeme Wheeler, did drop talk of future interest rate rises saying “a period of assessment” is warranted, and also warned once again

3

RBNZ claims macroprudential victory

From Banking Day: Reserve Bank of New Zealand governor Graeme Wheeler has talked up the bank’s macro-prudential policies to a Bank For International Settlements conference in Wellington.…He said house prices had risen rapidly in several Asia-Pacific countries in recent years, including Australia.“Strong housing demand can add to financial stability risks, especially when accompanied by high

14

NZ immigration booms as Kiwis desert Oz

By Leith van Onselen Statistics New Zealand has today released its permanent & long-term migration figures, which revealed that New Zealand net migration is at record highs as Kiwis continue to return home from Australia: The unadjusted figures for the September 2014 year showed New Zealand’s highest-ever net gain of 45,400 migrants. Until the August

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NZ tackles housing affordability head-on

By Leith van Onselen New Zealand’s National Government continues to put Australia’s Coalition Government to shame on the issue of housing affordability. In the lead-up to the 2013 Australian federal election, the issue of housing affordability received zero attention from Australia’s major political parties, and no public debate. For example, of the 48 discussion papers

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NZ income growth humiliates Australia

By Leith van Onselen In yesterday’s Top 10, Interest.co.nz’s David Chaston explained that the high popularity of the National Government, which won its third consecutive general election last month in a landslide, can perhaps be explained by surging income growth in New Zealand, which rose to record levels in the June quarter: …there is a

18

Kiwi to fly on National election win?

by Chris Becker Over the weekend, NZ Prime Minister  John Key’s incumbent National party won the general election in a clear majority. The effects of a third term for the conservative (ish) party on the South Pacific nation are being felt and discussed already, with the consensus rising that budgetary and social welfare reforms will continue

0

New Zealand income booms

By Leith van Onselen Statistics New Zealand (Stats NZ) has released national accounts data for the June quarter, which revealed 0.7% growth in real GDP over the quarter and 3.5% growth over the year – the highest rate of growth since the year to September 2007. The growth was largely driven by the services sector:

2

NZ house prices rebound on soft volumes

By Leith van Onselen The Real Estate Institute of New Zealand (REINZ) has released its August house price results, which registered a rebound in values following three consecutive months of fall, but another slowing in annual growth. In the month of August, the national stratified median price rose by 1.1% to around $442,000. Prices were

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NZ shows Australia how to address housing policy

By Leith van Onselen In the lead-up to the 2013 Australian federal election, the issue of housing affordability received zero attention from Australia’s major political parties, and no public debate. For example, of the 48 discussion papers outlining the Coalition’s policies on just about everything – including such useless topics as “creating a green army”-

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New Zealand pumps first home buyers

By Leith van Onselen You can tell it’s an election year in New Zealand with the incumbent National Government announcing over the weekend that it would double first home buyer (FHB) subsidies. From Interest.co.nz: Prime Minister John Key launched National’s campaign on Sunday with a plan to double first home buyer subsidies at a extra

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More evidence NZ macroprudential is working

By Leith van Onselen From Interest.co.nz’s Friday Top 10, featuring David Whitburn – a professional property investor, comes more evidence that the Reserve Bank of New Zealand’s (RBNZ) loan-to-value ratio speed limits are working: The Loan to Value Ratio (“LVR”) restrictions that took effect on 1 October 2014 have had an immediate effect on the

14

Kiwis continue to flood home from Australia (members)

By Leith van Onselen Statistics New Zealand has today released its permanent & long-term migration figures, which revealed that New Zealand net migration is booming and Kiwis continue to return home from Australia: New Zealand had a seasonally adjusted net gain (more arrivals than departures) of 4,500 migrants in July 2014. This is the highest

7

Westpac tips NZ house price falls

By Leith van Onselen From Westpac, via Interest.co.nz, comes new research tipping pain ahead for New Zealand’s housing market: For some time the Westpac Economics Team has been forecasting a modest resurgence of house price inflation this year, before the market turns more decisively negative later next year. Despite our near-term bullishness, we anticipate a

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The ANZAC’s diverging economic paths

By Leith van Onselen The New Zealand economy passed a symbolic milestone today, with the unemployment rate declining to 5.6% in the June quarter and in the process falling below Australia’s unemployment rate for the first time since March 2009 (see next chart). As noted last month, the diverging fortunes are also reflected in the

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Build up or out? Auckland needs both

By Leith van Onselen Hayden Duncan, the head of New Zealand’s largest real estate company, Harcourts, has provided an interview to Interest.co.nz, in which he expressed alarm at Auckland’s expensive home prices and urged the city to build up instead of out in order to cope with population growth and improve housing affordability: The average

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Kiwis flood home from Australia (members)

By Leith van Onselen Yesterday, Statistics New Zealand released its permanent & long-term migration figures, which revealed that New Zealand net migration is booming and Kiwis are returning home from Australia: In the June 2014 year, permanent and long-term (PLT) migrant arrivals numbered 100,800 (up 14 percent from 2013), the first time more than 100,000