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[BUSINESS] · New Zealand, Australia · 5 sources

started · updated

Part of situation: Global housing market corrections and stagnation (11 clusters)

New Zealand economy faces retail spending and housing price declines

New Zealand economy housing market crash retail spending decline interest rate hikes inflation

New Zealand is experiencing economic cooling as consumer spending and housing prices decline. Seasonally adjusted electronic card retail spending fell 0.4% in September, following a 0.9% drop in August. While food prices remained flat for the month, actual card spending saw a 0.9% increase compared to the previous year.

The housing market has also faced significant pressure. Following a 25 basis point increase in the official cash rate to 2.75% by the Reserve Bank of New Zealand, house prices have fallen 1.5% year-on-year. Real inflation-adjusted housing prices have returned to levels seen in mid-2017. This downturn is accompanied by a surge in for-sale listings, which have reached their highest levels in over a decade, and an 11.6% annual decline in sales volumes.

In Australia, the real estate sector is also facing headwinds. Seven major ASX-listed real estate companies, including GPT Group Ltd and Vicinity Centres Ltd, have hit 12-month lows following interest rate decisions by the Reserve Bank of Australia. Despite the share price dips, several of these companies are maintaining high trailing dividend yields.

Entities

Real Estate Institute of New Zealand · Reserve Bank of New Zealand · Statistics New Zealand

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] New Zealand house prices have fallen 1.5% year-on-year. www.macrobusiness.com.au
  • [○ 1 SOURCE] The Reserve Bank of New Zealand lifted the official cash rate by 25 basis points to 2.75% on 2 September. www.macrobusiness.com.au
  • [○ 1 SOURCE] New Zealand for-sale listings are at their highest level in more than a decade. www.macrobusiness.com.au
  • [○ 1 SOURCE] Food prices in New Zealand remained unchanged in September. investinglive.com
  • [○ 1 SOURCE] Seasonally adjusted electronic card retail spending in New Zealand fell 0.4% in September. investinglive.com

Sources

Markets Bet RBA Tightening Cycle Ending [www.sharecafe.com.au]
NZ BNZ Manufacturing PMI Jumps to 56. 5 as Production, Orders and Employment Strengthen [www.actionforex.com]
New Zealand house prices crash back to 2017 [www.macrobusiness.com.au]
Dividend yields in focus as seven ASX real estate companies hit 12-month lows [www.fool.com.au]
New Zealand card spending falls for second month as food prices hold flat in September [investinglive.com]