Haha, can't say I hadn't noticed ;-)
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87c ---> 65c is a pretty big drop and a stimulus to regional areas.
Yea, the lower NZD is just a bonus, great job Jacinda! How did people expect some of the highest house prices in the world to fall? Or did we not care about that?
At the end of the day the only way for house prices to fall is to reduce the return on equity, which means a tax if you aren’t the reserve bank. Just building more houses doesn’t work, we are currently building more than any time in the last 10 years with little immigration and prices have increased. Although this has meant rents have been flat in Auckland for the past year. Which is part of the reason I feel talk of increasing rents by 30% is a sad landlord delusion/ wet dream. If rents could increase to cover the full cost of this landlords wouldn’t be so salty but they know rents can’t which is why they are so upset.
The bolded bits there are just incorrect. There are plenty of factors that come into play in any sort of market, and property isn't exempt from them. Up until Tuesday, we were in a boom cycle for property prices. Plenty of commentators out there were saying we were nearing the end, with natural market forces coming into play (eg supply in Auckland going up is but one, as you've said) like slimmer yields, talk of interest rate hikes, peeps reaching their serviceability limits etc, plus some regulatory help like the new LVR requirements on IP's beginning to bite. This is all natural stuff and a "soft landing" was not far off. But this week, out of the blue, the government took a bloody great big pointy thing and unequivocally popped it, big time. Well that's my opinion anyway. Time will tell.
A soft landing wasn't far off... hand me a tui m8. They've been saying that for the past 12 years. What would it take to convince you action needed to be taken? Another doubling of house prices, or is that just what you would prefer to see? I smell a vested interest.
Slimmer yields is a lower return on equity which is exactly what I said. Interest rates have been falling for 40 years, people don't want to wait another 40 years for them to rise (I honestly don't think they will rise much in the foreseeable future as I think all the major productivity gains have already been made). Supply has been increasing for 10 years (meanwhile property prices went through the roof), people don't want to wait another 10 to buy a house.
Face it landlords were getting obscenely rich at the expense of renters who could not afford to buy their own house. Those that work for a living should have a decent opportunity to buy their own place.