Arab Today, arab today new zealand bank moves to cool auckland property market
Last Updated : GMT 11:13:46
Arab Today, arab today
Arab Today, arab today

New Zealand bank moves to cool Auckland property market

Arab Today, arab today

Arab Today, arab today New Zealand bank moves to cool Auckland property market

House prices in New Zealand's largest city have skyrocketed in recent years
Wellington - AFP

New Zealand's central bank on Wednesday announced measures to cool Auckland's red-hot property market, saying a potential real-estate bubble posed a significant risk to the economy.

House prices in the South Pacific nation's largest city have skyrocketed in recent years, resulting in Auckland being named as the world's ninth least affordable major city in an international survey released this year.

Reserve Bank of New Zealand Governor Graeme Wheeler said the median house price in Auckland was up 60 percent since 2008, including a rise of almost 17 percent in the past year alone.

He said the boom contrasted with the rest of New Zealand, where prices have edged up just 3.2 percent in the past 12 months.

"Prices in the Auckland region have become very stretched, increasing the risk of financial instability from a sharp correction in prices," he said in a report released Wednesday.

To cool the market, Wheeler said the central bank was targeting property investors in the Auckland region, who account for about a third of new mortgages.

He said the reform meant Auckland property investors -- those who do not intend to live in the house they buy -- would need a 30 percent deposit to get a mortgage, up from 15 percent.

Meanwhile the loan-to-value ratio in the rest of the country will be dropped from 15 percent to 10 in a bid to encourage investment.

"The objective of this policy is to promote financial stability by reducing the rate of increase in Auckland house prices, and to improve the resilience of the banking system to a potential downturn in the Auckland housing market," he said.

Wheeler said factors driving the price rise included low interest rates, increased investor activity and record immigration -- with Auckland the favoured destination for most migrants.

Industry data for March put the average house price in Auckland -- a city of 1.5 million -- at NZ$711,000 (Aus$698,000, US$527,000), higher than the Aus$680,000 (US$543,000) in Sydney, Australia's most expensive city, which has a population of 4.6 million.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today new zealand bank moves to cool auckland property market Arab Today, arab today new zealand bank moves to cool auckland property market

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Russia, Iran ink economic deals

GMT 08:03 2017 Wednesday ,29 March

Russia, Iran ink economic deals
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: عقارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Trump poised to roll back climate protections

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 05:17 2017 Wednesday ,29 March

Samsung to sell refurbished Galaxy Note 7s

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday