Kiwis putting money into banks and shares
For the first time in six years New Zealanders' savings into financial assets outstripped - just - that of housing.
Wednesday, March 14th 2007, 7:05AM
"Nevertheless, housing appreciation remains the biggest contributor to the growth in household net worth, which rose 3.8% in the December quarter and 9.7% during the year."
The latest Spicers Household Savings figures show that financial assets were boosted during the year by a $9.6 billion inflow into bank deposits (the biggest annual increase on record) and a $2.7 billion [20.2%] increase in private shareholdings.
Thanks to the share market’s stellar performance, more than half of this increase in private shareholdings occurred in the December quarter.
Spicers says that the introduction of KiwiSaver and tax changes are likely to contribute to the future growth of financial assets.
Average net worth per household increased $26,000 during the year to reach $352,200.
The annual rate of growth in total net worth continues to slow, and this is largely attributable to the slowing pace of housing appreciation.
The 9.7% gain in net worth recorded in 2006 is significantly slower than 2005’s 15.3% rise and even slower than the dramatic 26.8% rise recorded in 2003.
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