PHOTO: Don Brash. Photo credit: File
New Zealand’s housing market is “absurd”, says former Reserve Bank Governor Don Brash, and Kiwis not yet on the property ladder have little hope of making it up the rungs.
Skyrocketing house prices have been at the centre of national discourse in recent months, the country’s chronic housing shortage compounded by a fast-growing population and Kiwi expats returning en-masse to escape the ongoing pandemic, leading to an increased demand for slow-growing supply. With low interest rates and the removal of loan-to-value ratio (LVR) restrictions, more Kiwis were able to enter the property market in 2020 – contributing to the country’s sky-high asking prices.
Speaking to Magic Talk on Sunday morning, the former Opposition leader painted a grim picture for the future of home ownership in New Zealand, claiming Prime Minister Jacinda Ardern and her Labour Government have little interest in reducing the record-high house prices.
“The Government does not want house prices to fall, in fact the Prime Minister has been quite explicit that she wants them to continue to rise, although more slowly,” Brash told Sunday Cafe host Roman Travers.
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