Each month we take a graphical deep dive into the Antipodean housing markets.
In New Zealand, the effects of sharply lower fixed mortgage interest rates - down ~2ppts - are starting to show up more clearly in rising housing demand. Housing prices have risen a little in recent months and the number of housing loan commitments has continued to gradually increase.
Lower interest rates can be expected to support a pick-up in residential building in New Zealand which has fallen a large 1.5% of GDP from the peak.
Similar to Australia, there are signs of life in building permits for higher-density home construction but permits to build houses remain at a low level. We suspect that this will soon change.
Signs of a turnaround in New Zealand’s net immigration will also support housing demand.
Full chartpack and analysis is below.
