Can’t say I agree with Tony Alexander on all the points he raises especially with a touch of Xenopobia thrown in the mix. So what if Asians are buying property? When they pay out money it goes straight into the pockets of Kiwis, who in turn can compete back in the market.
BNZ chief economist Tony Alexander predicts the latest housing upturn will go on for another three years; says Auckland prices up 27% from 2009
The upturn in house prices “has only just started” and will probably go on for another three years yet, BNZ chief economist Tony Alexander says.
He says in his “weekly overview” that examination of Real Estate Institute of New Zealand data shows that Auckland house prices are already up 27% from the low point in 2009 in the wake of the global financial crisis.
Just behind Auckland is Christchurch with a 23% gain and the capital Wellington, with just an 11% rise. Across the whole country prices are up 16% during the same period.
Compared with the market high point in 2007, Auckland prices are up 12%, Christchurch 9% and Wellington is unchanged. Nationwide, prices are up 5%.
Alexander says the latest upturn bears the greatest resemblance to the one seen in the 1990s, “which was also led by Auckland, rather than the 2000s cycle, which came out of the regions”.
Alexander says there is a lot of speculation that these offshore investors are using the purchase of development land to gain entry to the country “under the investment route somehow, either directly or through an already established development business, and if that was the case it would not only be unfair competition (they are paying a premium for the land to purchase residency), but also has implications to the housing market, and surely won’t be helping “affordability?”