Corelogic stories
The package aims to boost supply and help first-home buyers, but experts warn it may not curb soaring prices or fix shortages quickly.
Home buyers could gain from easier grants, while investors face a tougher tax regime and rents may rise as a result.
Men own 31,000 more homes than women in New Zealand, underscoring how the gender pay gap is limiting access to property.
Average household incomes rose just 1.3% last quarter, leaving New Zealand house prices at their least affordable level since records began in 2004.
New Zealand home values rose 2.2% in January as tight supply and low rates drove a rebound in Christchurch, Auckland and Queenstown.
Possible tighter rules could curb investor demand as mortgaged buyers regain a 27% share of the housing market, CoreLogic says.
Record shortages of homes for sale are fuelling the pressure, with New Zealand’s median house price climbing to a fresh high for the fourth month.
New Zealand’s housing boom lifted values in almost every main centre, with Auckland now boasting 117 suburbs above the NZD $1 million mark.
Affordability is worsening for first-time buyers as house prices outpace incomes, deepening the housing divide and fuelling political pressure.
Nationwide house prices climbed 1.3% in October as low rates and scarce listings kept demand ahead of supply.
Record-low rates have lifted first home buyers to a 25% market share, but reimposed lending curbs could force many out again.
Lower migration losses are still propping up housing demand, though CoreLogic says border closures will eventually curb population growth.
Nationwide property values rose 0.8% in September as low rates and scarce listings kept demand firm despite the economic downturn.
Tighter lending criteria and renewed virus restrictions are likely to cool mortgage demand after July’s NZD $6.6 billion peak.
ANZ sees a deep slump in dwellings as Covid headwinds, job losses and weak investor demand push construction and prices lower.
Rents are falling in Queenstown and other pockets, but most areas are still posting gains as the recession deepens and job losses loom.
Auckland and Dunedin buyers are skewing towards mortgaged investors, as July's share hit a four-year high despite fresh Covid-19 uncertainty.
Property activity is likely to soften as recession, rising unemployment and a spring listings surge test demand in coming months.
Property values have already slipped nationwide, with tourism-dependent centres like Queenstown hardest hit as the recession starts to bite.
Smaller homes may offer investors better returns as weaker price growth puts rental yield back in focus amid uncertainty, CoreLogic says.
