New Zealand House Prices Continue to Surge Despite Curbs

By Stephen Wright

WELLINGTON, New Zealand–House prices in New Zealand rose at record annual rate in May despite curbs intended to cool the property market.

The Real Estate Institute of New Zealand said the median national sales price increased by more than 32% from a year earlier–the fastest annual increase on record. Prices also continued to rise month on month.

“There is no denying that New Zealand’s residential property market is still holding strong,” the institute said.

“Median prices haven’t significantly eased yet as many had hoped would be the case, and things are certainly not getting any more affordable for first-time buyers,” it said.

Record-low mortgage rates brought on by the pandemic, as well as tight supply, have fueled the price increases. The government has said it will remove tax advantages for property investors and the central bank has reimposed loan-to-value restrictions.

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