Marlborough Property Investors' Association

News & Updates

Recent updates


This time is different - cooling property market and higher interest rates

CHIEF ECONOMIST CORNER: PACKING SOME PUNCH The property market has cooled rapidly as the combination of loan-to-value ratio restrictions, higher interest rates (a turn in both the local and international cycles) and credit rationing dampen demand. That’s provided a near-term hit to recent exuberance, though it’s worth bearing in mind that a demand-supply mismatch will provide support and typically that’s seen the market run away again after previous similar lulls. What is different this time around is that interest rates are moving up and appear set to continue to do so, and policymakers are more serious in their desire to quell excessive lending growth. This will reduce the potential for the market to lift in a material fashion from here.  Read the full report here