New Zealand Property Investors' Federation
The NZPIF is the umbrella body for 17 local Property Investors' Associations throughout New Zealand.
In this month’s feature article, our Chief Economist Cameron Bagrie provides some quick answers to topical housing market questions.
He concludes 1) that LVR restrictions could be loosened from mid-2018, but likely in a staggered manner; 2) despite the economics (a supply shortage) telling us prices will keep rising in Auckland, the fact that rents haven’t moved to reflect the shortage shows us house prices have been heavily influenced by interest rates and credit – and these factors are set to be less supportive going forward; 3) the banks’ funding gap is still a key indicator and it has closed up, which suggests some of the extreme competitive pressure in the deposit space could ease and the credit wheels could turn a little faster; 4) falling Auckland house prices and rising construction costs could spell trouble in the developer space; and 5) while weaker housing activity has traditionally turned the broader economy lower, that link is expected to be broken to some degree this cycle.
Read all of September's Property Focus here