OECD housing report not completely correct

The latest OECD Housing report claims that New Zealand house prices are 70% too high compared to rental prices. This assumes that rental prices in NZ are where they should be, but the New Zealand Property Investors Federation (NZPIF) believes they are currently too low.

This would mean that the OECD study is overestimating the degree to which house prices in NZ are too high.

"The fact that rental prices as a percentage of housing costs are low at present is something tenants should enjoy while they can" says NZPIF Executive Officer Andrew King. "As interest rates and Government regulations are increasing, rents are likely to increase as well."

ENDS

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