Housing prices ready to cool as immigration slows
Thursday 5 February 2004
Booming house prices are poised to come off the boil as the influx of migrants continues to ease, although investors are still priming a strong residential property market.
By The LandlordThis should bring house-price inflation - now running at almost 20 per cent - back into single-figure territory before the year is out.
December saw a net increase of just 1600 permanent and long-term migrants, down from 2200 in November. These figures count newcomers intending to stay for at least a year, and expatriates aiming to settle back here, minus long-term departures.
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It’s full steam ahead for the Stevenson Group’s $800 million, 361-hectare industrial and residential development in South Auckland – despite the uncertainties of the post-Covid-19 era.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.