To read the full version of this content please select one of the options below:

New Zealand housing market may take a dive

Monday, March 9, 2015

Subject

The likelihood of a housing market crash in New Zealand.

Significance

On March 1, average house prices in Auckland, New Zealand's largest city, reached an all-time high of 764,424 New Zealand dollars (564,420 dollars) -- an increase of 1.9% from January 2015. There are considerable fears that the New Zealand housing market, as with its Australian counterpart, could be in a bubble at risk of bursting.

Impacts

  • High property values will detract from New Zealand's appeal as a destination for entrepreneurs.
  • Further 'currency wars' may drive investment in the relative safe holdings of New Zealand property.
  • Expectations of a rate hike in Q4 may be too relaxed if property values continue to rise.
  • Forecast GDP growth of 3.0% in 2015 will be revised downward if China faces a greater slowdown than at present.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.