I wish I could tag-out of New Zealand’s property market. What a mess!
Here’s something I recently read from Singapore. Not only did their equivalent of our Reserve Bank governer take personal and professional responsibility for an overpriced housing market, but a sniff of an “overheated” housing market is one where prices grew by less than 6% per annum.
Why can’t New Zealand be like that??
From “The Strait Times”, from the 1 July 2021
Property market not overheated, but prices closely watched: MAS
The Monetary Authority of Singapore (MAS) said it would remain vigilant to rising home prices even though the property market was not “overheated”.
“No, we do not think the market is overheated right now, because if it is overheated, then we have not done our job well,” MAS managing director Ravi Menon said in response to a question at a press conference on the MAS Annual Report yesterday.
…
While gross domestic product contracted last year, the residential property price index (PPI) rose by 1.6 per cent. As at the first quarter of this year, the PPI was 5.6 per cent above its pre-pandemic levels, said Mr Menon.
…
Mr Menon said that “a prolonged divergence between prices and incomes is unsustainable from a market stability perspective and undesirable from a housing affordability perspective”.
Man! New Zealand is suffering under 23% annual house price inflation after the Reserve Bank created $28 billion in credit that New Zealand didn’t need, and saying house prices aren’t its problem.