Looking ahead with new government
No policy positions have been announced yet but – based on announcements made during the election campaign - commentators believe there will be major changes in a number of housing market related areas.
These include house building which will see greater government involvement through the Kiwibuild programme; foreign investment which is likely to include a ban on buying existing dwellings; immigration which is set to be reduced and become more targeted; and monetary policy.
Westpac chief economist Dominick Stephens said the new government is likely to be more interventionist in the economy, tougher on foreign investment, and more liberal on social spending than the last government.
“The impact that the new government has on the economy, in both the short run and the long run, will depend on whether it addresses the distortions in New Zealand’s tax system that favour property and have skewed the economy.”
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