
In its most recent six-monthly Financial Stability Report, published this month, the Reserve Bank has targeted Auckland property investors with a raft of new restrictions.
"We are proposing these adjustments to the LVR policy to more directly target investor activity in the Auckland region, where house prices relative to incomes and rent are more elevated than elsewhere in New Zealand," the bank’s governor Graeme Wheeler said in a statement. A number of commentators, however, have been quick to observe that the changes are likely to have little effect and will not solve the underlying issue of housing under-supply.
Following recent consultation, the Reserve is establishing a new asset clas…