New Zealand Economy

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RBNZ to maintain LVR restrictions

By Leith van Onselen The Reserve Bank of New Zealand’s (RBNZ) officially introduced loan-to-value ratio (LVR) restrictions targeting investors on 1 October 2016, although banks began informally applying the rules since they were first announced in mid-July 2016. The latest mortgage data shows that household and mortgage credit growth has cooled significantly in New Zealand

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Anatomy of an Auckland housing disaster

By Leith van Onselen You know Auckland’s housing market has hit peak stupid when despite a near record high average dwelling price of $1.05 million: And rampaging population growth: We are being told that Auckland’s dwelling values must continue to rise otherwise developers will go bust: House prices and those of commercial property projects will

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NZ Government caves on housing affordability

By Leith van Onselen In the lead-up to last year’s September general election, I praised New Zealand Labour’s housing platform because it promised to address 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 for infrastructure. I

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Is NZ Labour another housing affordability phony?

By Leith van Onselen In the lead-up to last year’s September general election, I praised New Zealand Labour’s housing platform because it promised to address 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 for infrastructure. I

4

Banking Royal Commission reverberates across the pond

By Leith van Onselen The revelations of misconduct arising from the Australian Banking Royal Commission has led to calls for a similar Royal Commission into New Zealand’s banking system from First Union – the union for New Zealand finance workers: Stephen Parry, National Finance Sector Organiser, says the investigation into Australian banks has revealed troubling

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Auckland’s rat-wheel economy drives massive infrastructure deficit

By Leith van Onselen In August last year, Bernard Doyle, a strategist at JBWere, penned a ripping report on the New Zealand economy, arguing that rabid population growth was masking underlying weak productivity and poor per capita GDP growth: New Zealand has been in a productivity recession since 2012. Not that you’d notice from headline GDP

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RBNZ macroprudential succeeds in cooling speculative mortgage growth

By Leith van Onselen The RBNZ’s latest mortgage data shows that household and mortgage credit growth has cooled significantly in New Zealand following loan-to-value ratio restrictions targeting investors. As shown in the next chart, New Zealand household borrowing has retraced sharply, recording annual growth of 5.7% in March: Most of New Zealand’s household debt is

21

Despite immigration pullback, NZ housing shortage worsens

By Leith van Onselen New Zealand’s chronic housing shortage continues to worsen, especially in Auckland, despite dwelling consents continuing to rise, according to Statistics New Zealand. There were 11,192 dwelling consents issued across Auckland in the year to March (up 9.7%), and 31,392 consents issued across New Zealand over the year (up 2.5%): Despite the

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Property lobby negative gearing propaganda shifts to NZ

By Leith van Onselen Earlier this month, the New Zealand Government released an Issues Paper proposing to ‘ring-fencing’ investors’ losses on residential property so they cannot be offset against unrelated wage/salary income, in a bid to level the playing field between property investors and first home buyers. Today, the Property Institute has hit back, warning

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Auckland house prices continue to fall

By Leith van Onselen The REINZ has released its house price data for March, which revealed a 2.2% seasonally adjusted monthly decline in the national median house price, although prices were up 1.9% year-on-year: Outside of Auckland, seasonally adjusted house prices rose by 0.1% in March, with prices up 5.9% year-on-year. Looking at the major

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NZ’s housing shortgage worsens despite immigration pullback

By Leith van Onselen Auckland’s chronic housing shortage continues to worsen, despite dwelling consents continuing to rise, according to Statistics New Zealand. There were 11,052 dwelling consents issued across Auckland in the year to February (up 10%), and 31,245 consents issued across New Zealand over the year (up 3.6%): Despite the pick-up, none of this

4

RBNZ holds cash rate at 1.75%

By Leith van Onselen The Reserve Bank of New Zealand (RBNZ) has today left the official cash rate (OCR) unchanged at 1.75% and noted that economic growth is expected to strengthen and the labour market tighten, despite the housing market being restrained. It also indicates that rates will remain on hold for the foreseeable future

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Poverty and housing the key concerns of Kiwi voters

By Leith van Onselen With New Zealand’s Labour-led coalition Government nearly six months old, Roy Morgan has released new polling showing that poverty and housing are now the primary concerns of New Zealand voters: Quantified thematic analysis of the verbatim responses of a nationally representative sample of 999 New Zealanders found the economy and things

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Is Jacinda Ardern another housing affordability phony?

By Leith van Onselen In  the lead-up to last year’s September general election, I praised New Zealand Labour’s housing platform because it promised to address 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 for infrastructure. I

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NZ house prices bounced back in February

By Leith van Onselen The REINZ has released its house price data for February, which revealed a 0.8% seasonally adjusted monthly rise in the national median house price, with prices also up 7.1% year-on-year: Outside Auckland, seasonally adjusted house prices rose by 2.0% in February, with prices up 8.5% year-on-year. Looking at the major cities,

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Auckland’s immigration-driven housing shortage continues to worsen

By Leith van Onselen Statistics New Zealand on Friday released its dwelling consents data, which revealed that Auckland’s chronic housing shortage continues to worsen. There were 31,251 dwelling consents issued across New Zealand in the year to January 2018 and just 11,073 consents issued across Auckland: This is nowhere near enough to keep pace with

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RBNZ: Mass immigration drives epic Auckland housing shortage

By Leith van Onselen Last month, 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 over the

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NZ annual net migration eases to 70,100

By Leith van Onselen A week after Statistics New Zealand released data showing that the nation’s fertility rate has hit an all-time low: Statistics New Zealand has today released data showing that annual net migration into New Zealand has finally eased, falling to 70,100 in the year to January 2017, down 1,200 from January 2016: