New Zealand Property Market Set to Crash

[JIT]

Hi there,

Not that I follow or invest in the New Zealand property market, but I just read this article:

http://www.stuff.co.nz/4107670a13.html

A bit like what was being said about the east coast property market in Australia a few years back.

Pitt St. - if you read this, any thoughts?

GSJ

 

[nomadic]

I sold a property in Wanganui last month mainly because i felt i could do better things with the $ back here plus managing the PM was getting hard work.

Interest rates have also gone up a bit in the last few years which have reduced yields considerably. I just checked ASB bank and current rates are:

Variable Rate 10.30% p.a
1 Year Fixed 9.30% p.a
2 Year Fixed 9.25% p.a
5 Year Fixed 8.90% p.a

I still have some cash in an account over there getting 7.65% on call.

I have friends over there who are B&H investors and also developers and they all tell me they are still buying / building although not sure how much it's affecting their bottom line.

 

[leapyeah]

Some observations made in the first 10 seconds of viewing this article.

1. This article talks "slide" - not your more juicy "crash".
2. It is a comment by someone with a vested interest in talking down property.
3. The article is over a month old and there is hardly a chorus of "crash, crash" in the NZ media. There is, however, a chorus of "caution, caution" (omnipresent in this day and age, really).
4. New Zealand is not one big marketplace.
5. Are you bored, or just of nervous disposition?