skip to main content
Briefing

New Zealand: Key Sectors

Appears in: Asia/Pacific, Macroeconomy, New Zealand, Pacific, Real Estate, Sectors and Industries

Critical Issues

Background:

Much of New Zealand's household savings have gone into real estate investments due to low interest rates in the previous decade and strong capital gains in property prices. Housing assets are 5.7 times household disposable income. Since 2009, house sales have slowed and prices declined due to low mortgage rates. The demise of the debt-fueled housing bubble will likely continue as long-term mortgage rates rise, foreshadowing a return to low sales and prices. New Zealand's subprime market is undeveloped but its property market is more leveraged than the U.S. counterpart, exposing homeowners to interest rate risk. A recovery in immigration may revive the housing market as New Zealand is a destination for British expats.

Access to this content is restricted to RGE clients.

If you have a client code, please enter it here to activate your client account.

Click here for a free trial.

Learn About Our Services:

RGE Research

Our dynamic and intuitive macroeconomic research platform keeps you on top of the extraordinary shifts that transform our global economy, allowing users to uncover unique connections and insights. Discover the resource central banks and that 70% of the world's leading hedge funds, asset managers, PE firms, banks and corporations around the world depend on.

Our market strategists build on the work of our macroeconomic research team, incorporating market dynamics to answer crucial questions and generate actionable investment recommendations. RGE's Market Research and Strategy team gives clients actionable insight across six key asset classes:

• Currencies • Commodities
• Credit • Equity • Gov’t Bonds / Rates
• Emerging Markets • Financials
• Cross Asset Model Portfolio

RGE Strategy

Sometimes, reading research is not enough. Many RGE clients participate at the Roubini Direct Access level to gain a deeper understanding of specific issues. Through interactive live sessions, we engage with world-class thinkers, encourage knowledge sharing, idea generation, risk identification and validation of client initiatives.

Learn More »

For information on becoming an RGE Client, please speak with an RGE Representative in New York at +1 212-645-0010, or in London at +44 (0) 207 092 8850, or email americas@roubini.com for the Americas, europe@roubini.com for Europe, the Midddle East and Africa, and asia@roubini.com for Asia/Pacific.

Associated Readings

Research Reserve Bank of New Zealand Aug 22, 2011 Submission to the Productivity Commission Inquiry on Housing Affordability Analysis ASB Bank Nick Tuffley, Jane Turner, Chris Tennent-Brown and Christina Leung Jul 01, 2011 Home Loan Rate Report; Fixing creeping back on the radar News Interest.co.nz Bernard Hickey Jun 17, 2011 Roost report shows home loan affordability improves in May to best levels since April 2004 due to low interest rates and lower house prices Analysis ASB Bank Nick Tuffley, Jane Turner, Chris Tennent-Brown and Christina Leung May 30, 2011 Lower interest rates underpin housing optimism Analysis National Bank of New Zealand Cameron Bagrie, Steve Edwards, Khoon Goh and David Croy Apr 18, 2011 NBNZ Property Focus Analysis ASB Bank Apr 12, 2011 Home Loan Rate Report Research Reserve Bank of New Zealand David Hargreaves February 2008 The tax system and housing demand in New Zealand

Publications

Our Research
?

Our Thoughts
?

Outlook Center
?

Central Bank Watch
?

Key Views
?

Scenario Analysis
?
RGE Clients can activate their account by updating Manage My Account

Top 10 Most Read

Global Macro-Market Outlook
1. Macro-Market Overview: May 2013
Our Thoughts
2. The fall in China’s Flash PMI and 2013 growth prospects
Our Research
3. The Battle for Crude Oil’s Risk Premium
Our Thoughts
4. The selloff in Japanese equity
Our Research
5. Europe’s Playbook for Financial Crises
Our Research
6. Debt and Deleveraging: Will China Turn Japanese?
Our Thoughts
7. Downplaying the hawkish signal in the April FOMC meeting minutes
Our Research
8. Recent U.S. Data Signals Suggest Slow and Steady Activity
Our Thoughts
9. More thoughts and observations from Japan's Q1 GDP numbers last week
Central Bank Watch
10. RGE Policy Interest Rate Forecasts

ROUBINI FEEDBACK FORUM

What Do You Think?
Weigh in on Roubini.com's new look or report any problems you encounter.

Website Feedback Content Feedback