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


Key Issues: Buyer Classification And COVID-19 Effects

CoreLogic Senior Property Economist Kelvin Davidson writes:

Based on the CoreLogic Buyer Classification data, investors retained a strong appetite for residential property in February. Indeed, cash multiple property owners (MPOs, or investors) accounted for 14.5% of purchases for the month and their mortgaged counterparts took a 26.2% share. That’s the first time the combined market share has cracked 40% for almost four years. Low-term deposit rates are one factor that have pushed investors back towards property, while anecdotally, we’ve lately heard that the control an investor has over a rental property (as opposed to say shares or a syndicated fund) is another strong drawcard.

At the same time, there were hints in the latest Buyer Classification data that first home buyers (FHBs) have begun to feel a bit more strain. As the first chart shows, their market share of 23% for the first two months of the year represents a dip (admittedly small) from recent norms. It’s nothing serious yet, but the competition from reinvigorated investors, as well as renewed growth in house prices, may have started to hamper FHBs. Auckland is a good example of these patterns, where mo

© Scoop Media

Business Headlines | Sci-Tech Headlines


Reserve Bank: RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds

The Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee ... More>>


Elevate NZ: Venture Fund To Lift Productivity

The Government’s new $300 million venture capital fund - announced in last year’s Budget – is now open for business as the Elevate NZ Venture Fund. Finance Minister Grant Robertson says lifting New Zealand's productivity requires well-functioning ... More>>


COVID-19: Case Confirmed In NZ – Expert Reaction

After spreading across the globe for months, the first case of COVID-19 has been reported in New Zealand. The Ministry of Health says the risk of a community outbreak is low, due to their preparedness and the high awareness of the disease. The Science ... More>>


Agriculture: New Legislation To Boost Organics

New organics legislation will boost consumer confidence and help grow an innovative sector, says Food Safety Minister Damien O’Connor. “The Organics Product Bill, introduced to Parliament this week, aims to increase consumer confidence when purchasing ... More>>


Biodiversity Policy: Misinformation Circulating

Forest & Bird is concerned at misinformation circulating regarding a policy statement aimed at protecting New Zealand’s unique biodiversity. The National Policy Statement for Indigenous Biodiversity is being consulted on by the ... More>>