THERE IS NO BUBBLE SAYS BANKER

Housing bubble theory played down
Friday May 8, 2015


Anthony Healy says careful management of expenses contributed to the bank’s result. Photo / Brett Phibbs
Anthony Healy says careful management of expenses contributed to the bank’s result. Photo / Brett Phibbs
BNZ boss Anthony Healy says he doesn’t believe the Auckland property market is entering bubble territory, but New Zealand is facing a “real issue” around housing affordability.

Speaking yesterday after the bank reported a 27.7 per cent lift in half-year profit to $502 million, he said an ongoing shortfall in housing supply and strong migration would continue to drive prices higher.

“It’s hard to see a shock [price correction] when you’ve got probably 10 if not more years of additional construction that’s going to have to go on to try and get supply to catch up with demand,” Healy said. “I think this is a very long-term issue.”

link:  http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11445042

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