Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Auckland property investor lending tumbles 18%

Monday 26 September 2016 03:31 PM

Auckland property investor lending tumbles 18% in August as restrictions bite

By Edwin Mitson

Sept. 26 (BusinessDesk) - Lending to property investors buying homes in Auckland fell 18 percent in August after the Reserve Bank imposed new lending restrictions in July.

Central bank data show lending to investors in New Zealand's biggest city fell to $1.31 billion in August from $1.59 billion in July. It's the lowest month for lending to Auckland investors since January when $973 million was committed by the banks as an earlier round of loan restrictions dampened interest in the market for a couple of months.

Still, the impact of the restrictions hasn’t had as much impact as the first round of Auckland-specific restrictions. Between December 2015 and January 2016, lending to Auckland investors fell to $973 million from $1.33 billion, a drop of 27 percent.

The changes announced by the Reserve Bank in July capped bank lending to property investors with a deposit of less than 40 percent at 5 percent and restored the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent. The restrictions were also targeted nationwide following house price booms in places like Hamilton and Tauranga. All the major banks adopted the restrictions early, although they technically don't come into force until the beginning of October.

Lending to owner occupiers in Auckland fell to $1.86 billion in August from $1.88 billion in the month earlier, the lowest amount since February 2016.

Commitments to people buying homes outside Auckland rose to $2.94 billion from $2.84 billion in July.

Total lending declined to $6.11 billion in August from $6.31 billion the month before, a fall of 3.1 percent.

(BusinessDesk)

ends

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.