New Zealand Economy

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NZ PM spins Auckland housing failure

By Leith van Onselen With the New Zealand National Government’s single-minded focus on solving Auckland’s housing crisis by boosting supply failing dismally, and with an election due on 23 September, Prime Minister Bill English has resorted to spin. From Interest.co.nz: A steadier route to a later peak for Auckland house building might bring benefits both

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7 weeks out from election, NZ Labour changes leader

By Leith van Onselen With the General Election scheduled for 23 September, the opposition Labour Party has done the unthinkable and replaced its leader. Interest.co.nz has documented this morning’s mayhem: 8am: Good morning. Labour Party leader Andrew Little will face his caucus just after 10am on the third floor of Parliament Buildings. Little cancelled all

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NZ housing supply falls further behind population growth

By Leith van Onselen The New Zealand National Government’s single-minded focus on solving Auckland’s housing crisis by boosting supply continues to fail. Yesterday, Statistics New Zealand released figures showing that in the year ended June 2017, 30,453 new dwellings were consented: While this was up 4.7% from June 2016, it paled into insignificance against the

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NZ Government locks in ‘skilled’ migrant slave wages

By Leith van Onselen Back in April, New Zealand’s National Government announced modest “tweaks” to the country’s immigration program, which including a $48,000 income threshold for a skilled migrant, as well as only allowing employers to tap lower-skilled migrants for three years, with these people facing an annual review of their visas. The announcement of immigration

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NZ investor mortgage lending halves on macroprudential

By Leith van Onselen Data released 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 2016, although banks began informally applying the rules since they were first announced in

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NZ Government balks at immigration reform

By Leith van Onselen Back in April, New Zealand’s National Government announced modest “tweaks” to the country’s immigration program, which including a $48,000 income threshold for a skilled migrant, as well as only allowing employers to tap lower-skilled migrants for three years, with these people facing an annual review of their visas. The announcement of immigration

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Anatomy of an Auckland housing disaster

By Leith van Onselen Back in March, New Zealand’s Productivity Commission (PC) has released a report entitled “Urban planning – moving beyond the wheel spin”, which basically concluded that Auckland’s housing system is under siege from the combination of rapid population growth butting heads with a dysfunctional planning system, which is unable to cope with

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NZ immigration hits another record high

By Leith van Onselen Statistics New Zealand has released its permanent & long-term migration figures for June 2017, which revealed that annual net permanent and long-term migration into New Zealand hit a record high 72,305 people over the year: According to Statistics New Zealand, migrant arrivals were a record high 131,400 in the June 2017

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Immigration reduction party on track to decide NZ election

By Leith van Onselen I noted back in May how anti-immigration party, New Zealand First, had significantly increased its voter support, meaning that it could hold the balance of power and decide who forms the next government following the 23 September General Election. Today, Roy Morgan Research has released new polling showing that the incumbent

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NZ housing minister fails in Auckland housing defence

By Leith van Onselen New Zealand’s housing minister, Nick Smith, took spin to a whole new level yesterday, denying that his National Government had failed on their promise to boost Auckland housing supply and arguing that housing affordability had actually improved. From Interest.co.nz: The Building and Construction Minister was speaking on Radio NZ about a story that

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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 fail. Today, Statistics New Zealand released figures showing that construction momentum has continued to slow in Auckland, with just 885 dwelling consents issued in May and 10,379 issued over the year, with a downward

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IMF backs NZ mortgage LVR restrictions

By Leith van Onselen The IMF has just come out and backed the Reserve Bank of New Zealand’s macroprudential policies. From Interest.co.nz: The Reserve Bank’s Loan to Valuation (LVR) mortgage lending limits appear to have put a cap on house price growth but haven’t reduced the risks borrowers face from rising mortgage interest rates, according

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NZ Investor lending down 40% year-on-year

By Leith van Onselen Data released 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 2016, although banks began informally applying the rules since they were first announced in

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NZ immigration hits another record high

By Leith van Onselen Statistics New Zealand has released its permanent & long-term migration figures for May 2017, which revealed that annual net permanent and long-term migration into New Zealand hit a record high 71,964 people over the year: According to Statistics New Zealand, migrant arrivals numbered 130,400 in the May 2017 year, versus departures

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NZ Labour backtracks on immigration cut

By Leith van Onselen After months of promising to slash New Zealand’s immigration intake by the “tens-of-thousands”, the opposition Labour Party appears to have backslid somewhat, promising to leave the excessively high permanent migrant intake untouched. From Interest.co.nz: Labour leader Andrew Little says he is confident the party’s new regional visa policy will ensure migrants

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Is Auckland’s housing market about to roll 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 last week, the value of investor mortgages taken out across Auckland