Property Management

Cheap loans, speculation prop up a rural land prices

A combination of low financing costs, poor alternative returns and speculative behaviour is propping up rural land prices, a bank economist says.

Tuesday, October 21st 2003

The inflated land prices suggested "a degree of sectoral vulnerability", said BNZ economist Stephen Toplis. But Mr Toplis, head of the bank's market economics department, said in its latest Economic Monitor today that it would be "overly dramatic to suggest a bubble existed in land prices".

Similarly, the bank would not suggest there was a "bubble" waiting to burst in housing, but at least there was potential for improved future returns in the rural sector which gave "some justification for price movement that the housing sector may not be able to provide".

Read More - Opens in a new window

Most Read

Unity First Home Buyer special 3.95
SBS FirstHome Combo 3.99
ICBC 4.49
Kiwibank Special 4.49
SBS Bank Special 4.49
Co-operative Bank - First Home Special 4.55
TSB Special 4.59
Kainga Ora 4.59
Unity Special 4.59
BNZ - Std 4.65
Co-operative Bank - Owner Occ 4.65
ICBC 4.89
Kiwibank Special 4.89
China Construction Bank 4.95
Kainga Ora 4.95
SBS Bank Special 5.09
Unity Special 5.09
Nelson Building Society 5.09
BNZ - Std 5.09
Westpac Special 5.19
TSB Special 5.19
ASB Bank 5.25
Westpac Special 5.59
ICBC 5.65
Kainga Ora 5.69
SBS Bank Special 5.69
TSB Special 5.79
BNZ - Std 5.79
Kiwibank Special 5.79
Co-operative Bank - Owner Occ 5.89
ASB Bank 5.89
AIA - Go Home Loans 5.89
China Construction Bank 5.99
SBS FirstHome Combo 3.29
AIA - Back My Build 3.34
SBS Construction lending for FHB 3.74
CFML 321 Loans 3.95
Co-operative Bank - Owner Occ 4.99
Co-operative Bank - Standard 4.99
Heartland Bank - Online 5.30
ICBC 5.39
Kiwibank - Offset 5.65
Kiwibank Special 5.65
Kiwibank 5.65

More Stories

Thursday, February 19th 2026

RBNZ expects slower house price growth in the current recovery

The Reserve Bank thinks house prices will rise at a much slower pace during the current recovery than they have in past cycles.

Wednesday, January 07th 2026

Queenstown not off the radar for first home buyers

First home buyers are not being deterred by Queenstown’s soaring house prices.

Record levels of first home buyers taking out low deposit loans

Tuesday, December 23rd 2025

Record levels of first home buyers taking out low deposit loans

About half of all first home buyer lending has been done at a less than 20% deposit in recent months.

Buyers sitting on the sidelines in best time to buy in a decade

Thursday, December 04th 2025

Buyers sitting on the sidelines in best time to buy in a decade

Stable house prices, low interest rates and plenty of houses to choose from are still not enticing buyers.