runaway house prices

PHOTO: John Key. FILE

According to the NZ HERALD ANZ bank chairman Sir John Key says house price growth is now unsustainable.

“The rapid rise in house prices is not sustainable and it can’t and will not continue,” he said.

“I don’t know that we’ll see a tremendously big correction. But I think the boom run’s over.”

Former Prime Minister Key was speaking (via Zoom) at the launch of a new NZ Initiative report looking at the risk of another Global Financial Crisis.

There were many reasons for that view on house prices, he said.

Interest rates are starting to track up, the Reserve Bank was starting to employ other tools (like debt to income ratios) to restrict lending.

housing boom

The great New Zealand ‘Property Boom’ is OVER!

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