(New Zealand) A lack of properties on the market is driving New Zealand’s booming housing sector and the situation is not likely to change anytime soon, ANZ has said.The bank said it believed the housing market remained “healthy” and that underlying fundamentals looked set to continue in 2004.
“Housing market turnover has reached record levels and house price inflation has picked up to an annual rate of 14 percent. This is comparable with house price inflation seen in the mid-1990s, but is yet to trigger significant alarm bells as it did in the 1990s.”
ANZ said New Zealand’s housing supply and demand over the past 18 months had been “supported by population growth and increased household purchasing power, underpinned by a strong labour market and low interest rates.”