Fur­ther Re­serve Bank in­ter­ven­tion pre­dicted

Auckland City Harbour News - - OUT & ABOUT - SU­SAN EDMUNDS

We may not have seen the last of Re­serve Bank in­ter­ven­tion in the hous­ing mar­ket.

Loan-to-value re­stric­tions lim­it­ing lend­ing to in­vestors with de­posits of less than 40 per cent of­fi­cially kicked in this week. Banks had been re­quired to act in the spirit of the rules since July.

Corelogic an­a­lyst Nick Goodall said they seemed to be hav­ing an ef­fect on the mar­ket.

But the fac­tors driv­ing house price in­creases had not dis­ap­peared.

‘‘While de­mand has been hit by the lat­est round of loan-to-value lim­its, the low in­ter­est rate en­vi­ron­ment still makes bor­row­ing at­trac­tive for those able to get the re­quired de­posit.

‘‘Then on the sup­ply side, specif­i­cally in Auck­land, the Uni­tary Plan should start to have an im­pact but as with any de­vel­op­ment/reg­u­la­tory changes it’s go­ing to take a while for pro­cesses to catch up so op­tions for buy­ers will re­main con­strained for the time be­ing.

‘‘All of this means it’s un­likely that val­ues will be head­ing south any time soon, which will no doubt con­tinue to draw the at­ten­tion of both the Govern­ment and RBNZ. My pick? More in­ter­ven­tion to come.’’

PETER MEECHAM

More rules may be com­ing to curb the prop­erty mar­ket.

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