Investors driving up risk in Auckland housing but no room to raise interest rates, Spencer says

Mon, 24 Aug 2015

Aug. 24 (BusinessDesk) - The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. In a speech to the Northern Club in Auckland, titled "Investors adding to Auckland Housing Market risk", Spencer said housing supply in the city is growing "nowhere near fast enough to make a dent in the existing housing shortage."...

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