NEW ZEALAND'S ROCK STAR ECONOMY
Thursday June 25th, 2015
The economist who first said New Zealand was a "rock-star economy" thinks it still has star status.
HSBC's Paul Bloxham also believes that talk of Auckland's housing market being at crisis point is wrong.
He stated this morning that New Zealand is still outperforming most of the developed world. Growth is running at 3 percent per annum.
"We think 2015 has been an encore for the rock-star story."
He made the point that what is happening in the Auckland property market is not unique to New Zealand. It is similar to what is going on in places like London.
"Demand is strong for housing and supply has been weaker than it should be, so house prices are rising very strongly in Auckland.
"They are probably running a little bit faster than they should in a sustainable sense, but that rise in house prices is benefiting most of the population of Auckland. Most of the people are owners of property, and of course those people are benefiting from rising house prices.
"This is not something that is unique to Auckland either. It is not just happening in New Zealand. It is happening in all of the major cities in the world. It is happening in Sydney, it is happening in New York, it is happening in Hong Kong, it is happening in London. It is not a consequence of something that is just specific to New Zealand.