BUDGET 2021: House prices forecast to stall

Treasury is forecasting an end to rampant house price inflation.

Thu, 20 May 2021

Treasury expects rampant house price inflation to stop in its tracks due to the government ending mortgage interest deductibility for landlords.Forecasts released in the budget show property price inflation peaking at 17.3% in the year to June 2021, before a dramatic slowdown in house price growth to 0.9% in the next 12 months.From there it is expected to pick to a more leisurely 2% to 2.5% annual growth through to 2025.The Treasury said the change would alter the composition of buyers in the housing market.“Interest deductibility ... is...

Unlock all stories free for 10 days

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

We won’t charge for 10 days. You can cancel anytime with two clicks, an email or a phone call. Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].interval) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

You will be charged in 10 days unless you cancel beforehand.
We will remind you three times before charging you.
All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Media

Stuff moves into broadcast news

Newspaper publisher Stuff has agreed a deal to produce TV news on channel Three.

Daniel Dunkley 11:50am

Infrastructure

ComCom takes One NZ to court

The commission alleges some breaches are ongoing.

Rebecca Howard 9:40am

The Quiz Free

QuiznessDesk: Tuesday, April 16

Can you answer all ten questions correctly?

The Quizmaster 9:15am

Sponsored

Building confidence and capability is the key to boosting productivity

In the pack houses of Hawke’s Bay apple growers, smart cameras scan the apples looking for blemishes and grading the fruit to ensure only the best is selected for domestic and international markets.

ASB

Sponsored