Bollard says residential house prices may fall
Monday 6 September 2004
Reserve Bank Governor Alan Bollard today warned residential property investors to be wary about possible falls in house prices in the next couple of years.
By The Landlord
"In housing, as with any other investment, it's the investor who takes the risk, thus it's the investor who needs to be careful," Bollard said in speech notes.However, Bollard was careful to state that the Reserve Bank was not forecasting "a calamitous fall" in house prices over the next few years.
"A reasonable view is that house prices are unlikely to rise much further over the next two years, and some falls are certainly possible, particularly in some regions," he said.
He said some of the key drivers of the nationwide property boom were easing, such as rapid population growth.
Bollard's speech was for a New Zealand Property Council conference in Rotorua today, and ahead of his monetary policy statement on September 9.
Read More - Opens in a new window
Commenting is closed
House Prices
Demand is keeping prices resilient
Stronger than anticipated demand from property buyers is helping to keep prices nationwide buoyant – and solidly up on last year - in the post-Covid housing market.
Commercial
Augusta Capital takeover bid now unconditional
ASX-listed Centuria Capital has declared that its takeover of New Zealand property funds manager Augusta Capital is now unconditional, as it has secured nearly 66% of Augusta’s shares.
Mortgages
Mortgage holidays set for extension
Minister of Finance Grant Robertson says the Reserve Bank could extend mortgage holidays for struggling borrowers.
