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OECD report shows housing market poses biggest risk to New Zealand economy

Source: Xinhua| 2019-06-26 16:28:47|Editor: Shi Yinglun
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WELLINGTON, June 26 (Xinhua) -- Latest report released by OECD has warned that a fall in house prices poses the biggest risk to New Zealand economy.

The Organisation for Economic Co-operation and Development (OECD) released its annual economic survey on New Zealand on Tuesday, which found New Zealand was weaker when it came to income and earnings, housing affordability and long working hours, while housing market continued to be the biggest potential issue for the economy.

It is acknowledged by OECD report that New Zealand's wellbeing was "generally high," with strong employment prospects, health and social support. "But the main domestic risk is a housing market correction, though there is no evidence of oversupply," the report said.

While the authors acknowledged a raft of measures were underway to increase housing supply, it pointed to other areas which created barriers, including planning legislation.

"Strict regulatory containment policies still impede densification and should be replaced with rules that better align with desired outcomes," the report said.

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