Australian Property Market Boost Could Have Positive Impact On New Zealand
The prospect of a possible boost to the Australian property market could mean a positive impact here, in New Zealand. The Australian property market and economy have seen a downturn as of late and Kiwis have felt the slump, as well. However, Australian hubs such as Sydney and Melbourne are starting to see an increase in property prices.
Mike Taylor, chief executive of Pie Funds told Market Watch, “there is started to be evidence that those markets are stabilising, auction clearance rates are lifting in both centres.
” While this comes as good news for Australia, how does this affect New Zealand? When it comes to money, Kiwis are heavily invested in Australian business. A large majority of KiwiSaver funds lie with Australian stocks and New Zealand’s big cities tend to follow property trends set by places like Sydney.
Taylor told Market Watch that record territory had been reached by the ASX-200 share index last week, a positive sign that Australia’s economic slump might have reached a turning point.
In order to boost this upswing, the Reserve Bank of Australia will likely slice the country’s cash rate by 0.25 next week, however, any further cuts will have to be deliberated upon.
This will be good news to Kiwi investors and property enthusiasts alike. An upturn in the Australian housing market could mean improvements for New Zealanders, especially in the country’s big cities.