Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
TSB Bank reduced its 2 and 3 'special' home loan rates today, and Chinese bank ICBC also cut rates bringing them closer to the competitive end of the mortgage market. Also of note is that SBS ended its 4.99% 5 year 'special' and HSBC will end its 5.29% rate set today as well.
TODAY'S DEPOSIT RATE CHANGES
The Treasury's Debt Management Office today cut their retail Kiwi Bond rates, the AAA-rated Govt-backed term deposit. Their 2 year rate has dropped -25 bps to 3% and their 4 year 'earthquake' bond rate is down -50 bps also to 3%. Other changes - all reductions - came from Cooperative Bank, Kiwibank who reduced their 90 day Notice Saver, ICBC, General Finance and Westpac. Westpac cut their 30 day account, also to 3%, and their Online Saver to 3% also. Yesterday's RBNZ easing signals have been picked up and passed on quickly by financial institutions. Expect more to follow next week.
AUCKLAND DOMINEERING
QV says the average home's value in Auckland is now $809,000 and has increased 14.6% in the last year. Nationwide, the average is $507,000 up +8.3% but these numbers are being dragged higher by the outlier Auckland results. Wellington is up just +0.7% and Christchurch up by +4.7%. Tauranga is up +5.8%, Hamilton +3.3% and Dunedin by +0.6%.
TIGHT SUPPLY
Stocks of unsold houses are reducing, according to realestate.co.nz inventory data out today. We now have 21.3 weeks of housing for sale at current sale rates, down from 23 weeks last month. You have to go back to March 2007 to find a lower level. In Auckland it is just 10 weeks and that is declining too.
LEARNING NEW WAYS
Our new schools are getting new landlords via a PPP funding model. Four new schools will be build on that basis for almost $300 mln in Auckland, Christchurch (x2) and Queenstown. The Government is saving $27 mln and getting better standard buildings.
CURRENCY BURN
We all know dairy prices are falling, but things are worse in NZ dollars than is generally reported because prices are usually measured in US dollars. But the recent run up in the currency is really putting the squeeze on, and this was emphasised overnight by the latest USDA Oceania price monitoring.
WHOLESALE RATES STEEPEN
Wholesale swap rates fell at the short end and rose at the long end. The 2 year swap is down - bp today to 3.49% while the 10 year swap is up +2 bp to 3.88%. The 90 day bank bill rate is down today like many other short term rates and is now at 3.62%.
ONLINE RETAIL STRONG
Total online retail spending in March was up +11% compared to March 2014 levels. Online purchases at domestic merchants in March were up +7% on the spending levels a year earlier, which is slightly ahead of the growth in spending at physical stores (approx. 5%, based on electronic card transactions). Spending at international sites was very strong in the month of March - up +18% on the level we saw in March last year.
NZ DOLLAR SINKS
The New Zealand dollar continued its drift lower today. As of late this afternoon it is at 75.8 USc, 96.1 AUc, 67.7 euro cents, and the TWI is at 79.4. Check our real-time charts here.
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3 Comments
Ozz steps in/on OS buyers & tricks....
http://www.smh.com.au/federal-politics/political-news/joe-hockey-announ…
The government will also transfer all residential real estate functions to the Australian Taxation Office, which will use its data-matching systems to identify possible breaches. Divestment orders will be supplemented by civil pecuniary penalties, or infringement notices for less serious breaches, the government said in a statement.
Third parties – such as lawyers or real estate agents – who knowingly assist a foreign investor to breach the rules will also now be subject to penalties, including fines of $42,500 for individuals and $212,500 for companies.
Mr Abbott says there will also be increased scrutiny around foreign investment in agriculture and increased transparency on the levels of foreign ownership in Australia through a comprehensive land register. The Prime Minister insisted Australia was still "open for business" despite the crackdown. "I really want to stress that this is a government which is pro-business and pro-investment," he said. "We are certainly pro-foreign investment, but it does have to be the right foreign investment."
He said he wants a real estate playing field that is "at least level" and if possible "slightly tilted towards the locals".
listen to the drum beats get louder
The new rules do not apply to NZ citizens. The back-door into Australia
So, how long does it take to get New Zealand citizenship?
This will force the New Zealand government to harmonise with the Australian rules
If it doesn't and sedates itself then it will be obvious to the inscrutables that they can shift the proceeds of their forced sales prior to November 2015 of their AU properties without penalty, to New Zealand, buy New Zealand Property, apply for New Zealand citizenship, and as soon as they get that, hop straight back to Australia, using NZ as a back-door into Australia
Guess you can expect an increase in the tempo of Auckland property sales over the coming months together with a super surge in prices
This could be the blow-off we've been expecting
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