RBNZ: Auckland housing risks have increased
Central bank says new prudential rules have yet to bear effect as property prices up 27% year-on-year
The "increasingly stretched" housing market in Auckland is "at risk of a damaging correction", according to the Reserve Bank of New Zealand's latest financial stability report – in particular if economic conditions worsen.
Auckland house prices rose by almost 27% in the year to September, compared with 3% outside the capital, and are currently among the highest in the world relative to income.
"House price-to-income ratios in Auckland look increasingly stretched relative to global and historical
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