Growing property values over four years boosted the net worth of New Zealand homes by NZ$184 billion, new figures show.
A data release by Statistics NZ shows property values increased NZ$1.5 billion from 2008 to 2012.
The sector’s net worth reached $1.3 trillion in March 2016.
Statistics NZ says when properties are bought and sold, the prices paid sets new market valuations for all properties, not just the ones bought and sold. This has an impact on property values for all homeowners.
From 2013 to 2016, households borrowed additional loans of NZ$36 billion. During the same period, households deposited an extra NZ$45 billion at banks, but they withdrew NZ$6 billion from their equity and investment fund asset holdings.
“From 2008 to 2016, households loaned more than they borrowed,” says Gary Dunnet, Statistics NZ’s national accounts senior manager.
Net worth: The value when liabilities have been removed.
Market valuation: The price you would get if you sold your house in the current market.
First published 3 July, 2018
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