Blaming investors not the answer
Reserve Bank Deputy Governor Grant Spencer said that growing numbers of small investors were contributing to price pressure in Auckland.
He said data showed that investor activity in Auckland has increased from 33% in 2013 to 41% in 2015.
NZPIF executive officer Andrew King said the Federation disagreed that rental property activity is the prime cause of Auckland house price rises.
“Rental properties make up around 40% of all houses in Auckland, so you would expect that the proportion of sales would be around this level.”
In reality, the issue is a supply and demand problem, King said.
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