18 Jun 15
Restrictions on apartment lending to be relaxed
This week’s property news has brought apartment realtors two sighs of relief.
An authority on the apartment market states ‘The Herald reports that the banks are finally relaxing their restrictions on apartment lending (the apartment market has grown from 226 units in 1991 to 26,000 units in 2015 with never a vacancy rate or oversupply) AND the one man crusader against Auckland residential property prices Graeme Wheeler, Reserve Bank Governor is reported by Interest.Co to be ‘staying out’ of dictating apartment lending levels to banks’.
I say, Deo Gracias.
Wheeler’s meddling in the housing market has made it difficult enough for first home buyers to ever succeed and the Apartment Market is now their only credible option. I’m excited at the prospect of banks easing terms of lending.
The most frustrating restriction has been the size of apartments – this is so arbitrary and unfounded in risk that we have never received a plausible argument for it. Hopefully the banks are easing this too. It’s important for New Zealanders to be able to own their own property.
The City Sales Market Report (www.citysales.co.nz ) analysing the Agency’s last 10 years of sales is showing a sharp upswing in dollar-per-metre selling prices and a modest increase in the supply of new apartments.