Thursday, March 13, 2008

House prices fall again in New Zealand

New Zealand house prices fell again in February, for the third month in succession, to an average of $337,500, the Real Estate Institute reported yesterday.

(On March 2, in Housing Slump Looms in New Zealand, we reported that the median house price fell to $340,000 in January.)

Commenting on yesterday's institute report, Deutsche Bank chief economist Darren Gibbs said falling house prices could become a significant drag on the economy.

In other news today:

* ING New Zealand has suspended withdrawals from its diversified yield fund and the regular income fund after 400 investors applied this month to take their money out, Roeland van den Bergh reports in The Dominion Post today. "[The] investors feared falling victim to the global credit crisis to which the two funds are exposed. More than 8000 investors have $521 million in the funds."

* The kiwi dollar rose from a three-and-a-half-week low of US78.80c on Tuesday morning to US80.35c by 5pm yesterday. The rise followed the announcement by the United States Federal Reserve of a financial injection of up to $200 billion to boost banking system liquidity and alleviate credit concerns.

1 comment:

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