Ten things to look out for in 2019

 

1. LVR changes.

LVR loosening comes into effect on January 1. Goodall is "cautious" about the potential impact. He says "banks are likely to stick to tough lending criteria, so the pool of potential borrowers who can meet those requirements may not be that big.”

2. Foreign Buyers.

The foreign buyer ban has been in place since October, and Goodall expects foreign purchases to fall to close to zero. Yet he believes foreign buyers could still play a role in funding apartment blocks and off-the-plan residential property: "The numbers won’t be massive, but ultimately, everything helps when it comes to increasing NZ’s housing stock."

3. Capital Gains Tax

The Tax Working Group submits its final report in February 2019. Goodall predicts no short term impact from the move: "It’s important to note that the government would then have to accept that recommendation and also survive the next election (2020) before any tax would come into law."