No let-up in housing market for years: ASB

In its latest quarterly economic update, it says there are signs that increasing housing demand is now not just an Auckland and Christchurch phenomenon, but is spreading to other centres.

The report says that, given it will take time for any pick-up in construction to flow through to new housing supply, it will be years before the pressure comes off house prices in any substantial way.

“The more acute supply constraints in Auckland and Christchurch have already driven stronger house price inflation in these regions, and this is likely to continue over the coming year.”

ASB said annual house price inflation would peak at about 6% or 7% nationwide, with upside risks