About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Monday, December 9th, 12:04PM
rss
Latest Headlines

New flames to fan housing market

The demise of the capital gains tax proposal and record low mortgage rates will led to a pick-up in housing demand and boost the market, ASB economists say.

Thursday, April 18th 2019, 12:52PM 1 Comment

by The Landlord

It’s a well-recorded fact that housing markets around the country are returning very different results, with Auckland’s market softening while others are running hot.

That state of play is likely to continue with supply constraints prompting price growth in many areas, according to ASB’s latest housing market report.

The Reserve Bank’s surprise announcement that the OCR’s next move was likely to be down rather than up has provided support for this as it has translated into falling mortgage rates.

ASB senior economist Jane Turner says forward looking economic data remains soft so the Reserve Bank is expected to cut the OCR by 50 basis points over 2019.

Assuming the Reserve Bank delivers, they expect mortgage rates to remain low and that will provide a boost to housing demand, she says.

“Lower mortgage rates will see house price growth remain firm across much of New Zealand over 2019. Even in Auckland, they will keep a floor under house prices.”

While housing supply is proving slow to catch up with demand, ASB does expect it to do so which will reduce some of the upward pressure on house prices outside of Auckland and Christchurch.

“So we continue to expect house price growth will gradually moderate over 2020 once housing supply catches up.”

The impact of Government housing and tax policy changes, along with decreased affordability, are some of the headwinds expected to constrain the market somewhat.

However, the Government’s announcement that it will not be adopting the Tax Working Group’s capital gains tax recommendation has put an end to one area of uncertainty.

Turner says that part of policy was weighing on housing demand, and investor price expectations, in March and April.

“As the Government ultimately decided to not introduce a capital gains tax, we expect housing demand may pick up slightly heading into winter.”

This combination of factors means they believe the Auckland market will achieve a “soft landing” as opposed to the more disruptive adjustment seen in the Sydney and Melbourne housing markets, she says.

 

Tags: ASB Auckland capital gains tax CGT house prices housing market Mortgage Rates mortgages property investment tax tax working group

« Investor slump continues in FebruaryInvestor lending weak in March »

Special Offers

Comments from our readers

On 19 April 2019 at 11:06 am alittle said:
What nonsense. As far as housing is concerned Bright - Line Test = CGT. As that will curb speculators and investors interested for more than 5 years investment can buy but now rental income is peanut specially in Auckland and Capital Gain is finished at least for next few years. So No CGT will not have much real impact and argument that will help is motivated vested argument

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 ▲4.05 4.49
ANZ Special - 3.55 ▲3.55 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
BNZ - Classic - 3.49 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide ▼5.65 ▼4.75 ▼4.75 -
Credit Union North 6.45 - - -
Credit Union South ▼5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.54 3.54 3.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank ▼5.20 ▲4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▲3.45 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.39 3.45 3.89
Sovereign 5.30 ▼3.89 ▼4.05 ▼4.39
Sovereign Special - ▼3.39 ▼3.55 ▼3.89
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.45 3.99
Median 5.34 3.99 4.07 4.39

Last updated: 9 December 2019 9:02am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com