PHOTO: From 2013 to 2016, the household sector borrowed additional loans of $36 billion. Image Source – NZ Drug Foundation
Rising property prices from 2013 to 2016 boosted the New Zealand household sector’s assets by $184 billion, Stats NZ said today. The sector’s net worth reached $1,312 billion in March 2016.
The growth in property values over the four years contributed 51 percent of the $364 billion rise in household net worth over this period. In comparison, household property values rose $1.5 billion over the five years from 2008 to 2012.
When properties are bought and sold, the prices paid establish new market valuations for all properties, not just the ones bought and sold. This has a general effect on property values for all property-owning households.
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