Rising petrol prices not good for property

He says there are a couple of factors at play; one is that rising prices makes people poorer, and poorer consumers are not good for the property market.

The other impact is that rising petrol prices add to the inflation rate, which is already running above the Reserve Bank’s mandated band of 1-3% annually.

Doyle says that if prices keep rising they may delay the central bank easing interest rates, which means that mortgage rates stay up.

Petrol prices aside, Doyle has become more relaxed about the outlook for the property market in recent months. Previously signs weren’t looking good, but with the recent turn around in net migration figures things look better.