New Zealand’s frothy property market is a key concern but the bubble will likely deflate over the next two to three years, New Zealand’s Deputy Prime Minister and Minister of Finance Bill English told CNBC.
House prices spiked to record highs in August as demand has outpaced supply in New Zealand’s largest cities.
Government property valuer Quotable Value (QV)’s residential property index rose 8.5 percent in the year to August 30, 8.3 percent higher the market’s previous peak in late 2007, and up from a 8.1 percent annual rate in July, Reuters reported.
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