New Zealand's commercial property lending less risky now due to lower debt funding

Thu, 26 Mar 2015

By Fiona Rotherham March 26 (BusinessDesk) - The Reserve Bank said New Zealand’s $180 billion commercial property sector has become less risky since the global financial crisis because a reduced amount of debt is being used to fund new developments and purchases. In a bulletin out today, the bank said commercial property lending has been the main reason for defaults worldwide during most financial crises. There was a major commercial property bust in the late 1980s in New Zealand after the 1987 sharemarket crash, when a large supply of...

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