tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, July 10th, 9:53AM

News

rss
Latest Headlines

Housing market risks for NZ - OECD

The steep rise in New Zealand’s house prices is a major risk to the country’s economic success, a new report from the OECD warns.

Tuesday, June 25th 2019, 10:26AM

by Miriam Bell

According to the OECD’s latest economic survey of New Zealand, the economy has stabilised and there is solid growth, picked to come in at 2.5% this year.

This is supporting well-being through jobs and incomes.

But OECD Deputy Secretary-General Ulrik Vestergaard Knudsen says that not all New Zealanders enjoy the same levels of well-being, with gaps in health, education, employment, and income.

“The challenge going forward will be to continue improving well-being through building a more productive, sustainable and inclusive economy.”

One of the big domestic risks to the economy is a housing market correction - although there is no evidence of oversupply, the report states.

"The effects of a contraction would be magnified by the elevated household debt levels resulting from sustained house price increases."

The report also says that housing is an issue because of the big rise in house prices which means that affordability has dropped and because homelessness is high.

It suggests reforms to increase housing supply responsiveness to demand would improve affordability, enhancing well-being.

This could include replacement of regulations that restrict new construction with rules that facilitate densification.

It also puts forward the case for local government infrastructure funding pressures call for new sources of funding, such as special purpose vehicles financed by targeted rates.

And it advocates that greater priority should be given to new rental housing, including increased provision of social housing in areas with shortages.

Additionally, the report was not positive about the Government’s controversial KiwiBuild policy as it stands, saying wider issues like planning, infrastructure and construction sector constraints need to be sorted out first.

It suggests the policy could be better targeted and should look at freeing up land for development and putting risk back on to developers.

Finance Minster Grant Robertson says the OECD’s recommendations are set to be addressed by upcoming policy announcements or changes.

“In housing, the new Urban Development Authority will cut through red tape to increase housing supply.

“The KiwiBuild reset will drive the building of affordable housing, and we’re ramping up the state house building programme announced in Budget 2018.”

*A snapshot of the Economic Survey of New Zealand, with the main conclusions, can be read here.

Tags: affordability house prices housing market KiwiBuild OECD price growth

« Free Investment Property Showcase Events: Auckland, Wellington and ChristchurchNo monolithic cladding, no price stigma »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    2 hours ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    3 hours ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    19 hours ago by LNF
  • Commission disclosure: What's material?
    “The consumer should know that there is at times large amounts of comission involved but it has to be balanced with not confusing...”
    24 hours ago by Good Hamish
  • Commission disclosure: What's material?
    “There should be no place for a subjective materiality test in the disclosure regulations, especially where is is the party...”
    1 day ago by Paul Flood
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
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 10 July 2020 9:02am

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