NZ housing prices increasing fast

According to the NZ Herald today, NZ house prices are amongst the world's fastest growing



The Economist magazine's cover story this week put New Zealand at fifth place out of 20 countries on its house-price indices.

In the first quarter of this year, prices here were up 12.5 per cent compared with the same time last year, behind South Africa, up 23.6 per cent, Hong Kong 19 per cent, Spain 15.5 per cent and France 15 per cent.

The United States ranked equal to New Zealand with a 12.5 per cent rise, although in areas like NY and LA and Miami the properties have risen as much as 50% or more in the last 2 years. Then Denmark up 11.3 per cent, Sweden 10 per cent, China 9.8 per cent, Italy 9.7 per cent, Belgium 9.4 per cent, Ireland 6.5 per cent, Britain 5.5 per cent, Canada 5.2 per cent, Singapore 2 per cent, Netherlands 1.9 per cent, Switzerland 1 per cent, Australia 0.4 per cent, Germany -1.3 per cent and Japan -5.4 per cent.

"Never before have real house prices risen so fast for so long in so many countries," the magazine said, although it noted house price inflation in New Zealand, Ireland and the Netherlands has slowed significantly in the last year.

"Measured by the increase in asset values over the past five years, the global housing boom is the biggest financial bubble in history. The bigger the boom, the bigger the eventual bust."