PHOTO: New Zealand property market
OPINION
The property market in New Zealand has defied the belief of many by growing in terms of price and volume. This due to two main factors
1/ The pumping of artificial dollars into the economy.
2/ Kiwis returning from abroad
Index results as at 3 August 2020 – CORE LOGIC
Bindi Norwell, Chief Executive at REINZ says: “New Zealand’s property market continued to defy expectations in July with sales volumes increasing by 24.6% when compared to the same time last year. This was the largest annual percentage increase in sales volumes we’ve seen for the country since September 2015, highlighting just how confident the market was during July.
The the facts are:
1/ Sugar Economy – Billions are being pumped into the economy. We are living in a false economy
- $13 billion has been pumped into our economy through the wage subsidy
- Small Business Cash-flow Scheme has paid out over $1.5 billion
- “The government expenditure to prop up the economy is coming at a very significant cost. We are borrowing over $1.5 billion every week to pay the bills.” NATIONAL PARTY
- We are among a $60 billion dollar stimulus that has been underway since 25 March 2020
2/ Unemployment figures are horrendous.
3/ Mortgage approvals are down – despite what many think
Predictions
- House prices will fall.
- 2020 will see less residential property sales than 2019
- Immigration numbers will continue to rise putting more pressure on the rental housing stock
- Mortgage Rates will continue to drop on the back of a falling OCR
