New Zealand Housing Market Most at Risk of Bust, Goldman Says
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G-10 house-price report finds New Zealand’s most over-valued
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Goldman sees 40% chance of prices dropping in next two years
New Zealand’s housing market is the most over-valued among the so-called G-10 economies and the most at risk of a correction, according to Goldman Sachs.
In research published this week, the investment bank said there is about a 40 percent chance of a housing “bust” in New Zealand over the next two years, which it defines as house prices falling five percent or more after adjustment for inflation.
The report looks at housing markets in the G-10 countries — those with the 10 most-traded currencies in the world — and finds they are most elevated in small, open economies such as New Zealand, where house prices have rocketed in recent years. In Auckland, the nation’s largest city, the average price has surged 91 percent since 2007 to more than NZ$1 million ($688,000)…
New Zealand Housing Market Most at Risk of Bust, Goldman Says
