New Zealand saw third-fastest house price growth in world, biggest bank warns trend will fade
New Zealand has had the third-fastest rate of house price growth in the world over recent years. The country's biggest bank warns that this strong trend is unlikely to continue, as high interest rates and slower migration begin to weigh more heavily on the property market.
Drawing on data from the Reserve Bank of New Zealand, ANZ Bank said the country had the third-fastest rate of house price growth in the world between 2014 and 2026. New Zealand sat behind only the Netherlands and Turkey in the ranking, with years of rapid gains pushing home ownership down in many regions.
The bank's report highlights that high mortgage rates have eroded buying power, while a slowdown in net migration is now reducing demand. House prices in major centres such as Auckland and Wellington have been broadly flat over the past year, with some coastal areas showing modest declines.
ANZ economists project a more measured annual price increase of around 3% over the next three years. The government's social housing investment plan and ongoing urban planning reforms could also help boost supply, supporting a shift to a more balanced growth phase for the market.
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