Auckland’s Surging House Prices Top Sydney, Parts of New York CityBy
Market squeezed by supply shortage, immigration and low rates
RBNZ lending restrictions may be starting to curb demand
The average house price in Auckland, New Zealand’s largest city, has surged above NZ$1 million ($730,000) for the first time.
The price for the Auckland area, home to a third of New Zealand’s 4.7 million people, jumped 16 percent in August from a year earlier and 6.1 percent in the last three months to NZ$1.01 million, according to data published Tuesday by government property research agency Quotable Value. The city’s average price has risen 86 percent since 2007.
Record immigration, low interest rates and a supply shortage are driving Auckland’s housing market, and in turn fueling a nationwide boom. The central bank, which has been unable to raise borrowing costs because of weak general inflation, has introduced lending restrictions, focusing particularly on investors, in an effort to curb demand…
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